Twenty-three retirement communities have reported first-time payment defaults on municipal bonds in 2020.
Since 2009, the retirement sector has never before posted more than 22 defaults in a given calendar year, according to a recently released report from Municipal Market Analytics (MMA). That previous high of 22 was recorded in 2016.
So far in 2020, 52 muni borrowers across all sectors have recorded first-time payment defaults, representing $5.04 billion of outstanding principal, the MMA report showed. The retirement sector has been the hardest hit. In addition to having the most first-time payment defaults, the sector also has had the most emergency draws (13) on contingent security provisions such as reserve funds and bond insurance to avoid default.
Senior Housing News
By Tim Mullaney | August 24, 2020