As US municipalities look to raise money, they are increasingly considering options other than the bond market. In February, Riverside, California, had been intending to issue a bond to raise money for expansion of its performing arts centre, but scrapped the deal in favour of a $25 million loan. According to the Wall Street Journal, Elgin Academy, a school in Elgin, Illinois, dropped its bond offering, instead taking out a loan of $10 million.
Municipal bond issuance grew in 2009 and again in 2010, reaching about $475 billion, but that growth was driven by the Build America Bond programme.
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