Debt issues back in focus as economy slows down

Local government bonds flourish as limited availability triggers demand from investors

The renewed focus by leaders at the national level on "stabilizing economic growth" has brought local government financing vehicles back from the brink of extinction.

Just weeks ago, many observers believed that such off-balance-sheet debt issues would soon be a thing of the past. Now, issues are expected to accelerate for the rest of this year, and even older LGFV securities are being snapped up by yield-hungry investors - even as a wave of on-balance-sheet municipal bonds starts to hit the market.