Mar 2: Matt Fabian on anti-Wall Street sentiment

Part 3, March 2 2009: Matt Fabian, managing director at Municipal Market Advisors, says taxpayers in Jefferson County, Alabama (which is struggling with a heavy debt burden) are turning against the idea of repaying bondholders. If issuers start to rally around anti-Wall Street sentiment, that would be a cause for concern. In general, because municipal bonds are so safe (because bondholders get repaid before many other creditors), when they do default, it is for political reasons.