Roubini Global Economics has published a research report about the municipal bond market. It predicts that defaults will total $100 billion over the next five years. Actual losses to investors will be $35 billion because of the high rate of recoveries for these bonds. This prediction is in line with Bill Gross of Pacific Investment Management Company and much more optimistic than the $2.9 trillion worth of defaults foretold by Meredith Whitney, the eponymous analyst of Meredith Whitney Advisory Group. The report was written by David Nowakowski and Prajakta Bhide.
Nouriel Roubini, also known as Dr. Doom, is famous for forecasting the credit crisis and is the chairman of Roubini Global Economics.
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