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Bond Market Reactions to Hurricane Katrina: An Investigation of Prices and Trading Activity of New Orleans Bonds  

Author:  Dwight Denison.

Source: Volume 27, Number 02, Summer 2006 , pp.39-52(14)

Municipal Finance Journal

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This paper investigates how the municipal market initially responded to the fiscal stress caused by Hurricane Katrina, as indicated by trading activity and prices of New Orleans municipal bonds. The reaction of the municipal bond market post-Katrina provides important insights into the relationships among credit uncertainty, trading activity, and bond prices. The paper concludes with a brief comparison between the market response to Katrina and the market reaction to the Orange County, California, bankruptcy.


Affiliations:  1: University of Kentucky.

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