The Wall Street Journal reports:
Banks are setting aside billions of dollars to do something that until now was rarely heard of: making big loans to cities, states, schools and other public borrowers that otherwise might have turned to the bond market.
There's more:
Municipalities that have taken out direct loans say interest rates are typically lower than they would pay in the bond market, and they don't have to pay underwriters and lawyers to prepare a public offering. They also can avoid the documents and administration involved in the public disclosure required for bond offerings.
You'll want to read the whole article.
