Credit default swaps on muni bonds rise

The risk of default on municipal and state bonds is rising, resulting in higher prices for credit default swaps, which insure against bond defaults. This will undoubtedly increase the borrowing costs of states and municipalities, exacerbating their already tenuous fiscal conditions.

http://www.huffingtonpost.com/2010/04/27/banks-bet-against-us-citi_n_553891.html