Japanese banks are using letter-of-credit expirations to reassess their exposure to municipal issuers, shed lower-quality debt, and increase fees.

Sanwa Bank Ltd. last week drew the attention of the municipal markets when it declined to renew a letter of credit for the Philadelphia Water Department and offered only a six-month extension to Enid, Okla.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.