As Other Lenders Sit on Sidelines, Local Government FCU Steps into NC Bond Market

The US just held a so-called “change election” of course. Further down the ballot from the high-profile national races, many voters in cities and towns all across the country considered bond initiatives. These bond questions in essence ask voters to consider another form of change … by choosing whether or not to fund projects that are keys to growth and community life.

As a voter, some of these ballot intiatives might seem a little hard to understand, but when you consider that essential things in your community like parks, water and sewer lines, schools and roads may well have been funded by municipal bonds, you begin to understand and see their importance.   

In many cases, these are the types of improvements that can ensure future growth and improve the quality of life for citizens. But because the projects are so large that financing is involved, voters in those towns, cities and counties are often asked to decide what gets funded.

What has happened in the wake of the financial crisis, however, is that the bond market is giving the thumbs down to these projects, as investors flee credit markets in droves. Cities with home-run credit ratings can’t get bond money to finance projects, and that’s a real shame.

To counter the loss of confidence in the marketplace, Local Government FCU announced recently it is investing $50 million in the NC Municipal Bond Market. These funds will be used to finance some of these worthy projects statewide, and hopefully spur action among some other lenders to jump in to these very safe investments.

Kudos to the team at LGFCU for recognizing a terrific way they could meet needs in NC, and make a bold statement to their membership in doing so!

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