Ty Schoback is an analyst at Columbia Management Investment Advisers, LLC (CMIA), focusing on state and local general obligations, pooled loans, and public power credit analysis. He joined the firm in 2008 and has been a member of the investment community since then.
Mr. Schoback earned a B.S. in finance from Winona State University.
California is in its fourth year of drought, one of the worst in the past century. Key factors when assessing credit quality of water utilities are water supply and source diversity. Credit strength of California water utilities hinges on political willingness to raise rates. Potential impact on California-specific and national muni bond funds. California is
Ability is not the same as willingness to pay. Political pressures continue to influence the bankruptcy process, potentially to the detriment of bondholders and leaving politically-connected stakeholders more equal than others. Legal protections included in bond indentures may prove inadequate. The Unlimited-Tax G.O. (UTGO) bonds and the Limited-Tax G.O. (LTGO) bonds failed to deliver their
We expect an increased divergence in state credit quality in the coming years, compared with what has been seen over the past two decades. While the overall state sector remains robust, we believe notable credit distinctions are beginning to materialize among several weaker states. Investors should be aware of this divergence and seek to be
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