Pittsburgh currently has a barely investment grade credit rating and will be facing significant need to refinance elements of its debt in the next couple of years even if revenue holds up in the short term. There is some more bad news on the horizon and that is municipal bond interest rates are shooting through the roof. The Wall Street Journal has the story:
As a result of that surprising forced selling, yields on debt from municipalities and other tax-exempt issuers jumped to their highest levels in history, when compared with safe debt issued by the U.S. government. The average AAA-rated, 30-year municipal bond yielded 5.14% Friday afternoon, compared with 4.42% on a U.S. Treasury 30-year bond.
Remember, municipal bonds are tax free, so the pre-tax equivilant rate is roughly 8% compared to 4.42% for US Treasuries. And this if for good governments with significant reserves and a history of responsibility