Public Finance

Public Finance introduces the nuances of the US municipal financing market from the perspective of issuers, investors and intermediaries. Students will learn about traditional fixed rate bond structures, but will also look at innovative financing techniques that have been implemented in recent years. In-depth discussions of interest rate markets, especially the impacts of Federal Reserve policies and recent inflation pressures, and their impact on financing will be a key area of study. The growing pressures of public sector pensions are influencing how states and municipalities manage their budgets, and are under increased scrutiny by market participants; as such, pension accounting will be a focus area for the class as well. Financial distress and municipal bankruptcy will be examined through case studies of recent high profile issuers, such as the New York MTA, the City of Detroit and the Commonwealth of Puerto Rico.