Logo 19 Jun 2024

Acceptance draft defaults show local govs still in hot water over

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Based on the latest data on commercial acceptance draft (CAD) defaults, local government financial woes showed no sign of improvement in May.
Refresher: CADs are tradable, non-interest-bearing IOUs with a fixed maturity (see our October 20 note).

Local government financing vehicles (LGFVs) issue CA...