Charter Schools and Colleges Post Record Year for Muni Distress.

INVESTORS; RETIREMENT communities; RELIEF models; ECONOMIC indicators; PRICE inflation; CHARTER schools

In 2024, municipal bonds sold by colleges and charter schools experienced record levels of distress, with a total of 185 impairments, the highest since the start of the pandemic. Charter schools accounted for the most impairments, followed by retirement communities and colleges. Factors such as inflation, declining student enrollment, and the end of Covid-era stimulus funds contributed to the financial challenges faced by charter schools. Despite these difficulties, municipal-bond defaults remain rare, with a 0.11% annual default rate in 2024. Investors can still find opportunities in the charter school sector, which is diverse and plays a vital role in the national education system. [Extracted from the article]

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