Enrollment Growth Spurs Charter School Sales

U.S. charter schools are issuing municipal debt at the fastest pace since 2007 as enrollment grows, national networks expand and the lowest yields in a generation spur construction and refinancing.

The independent public schools operate without many of the rules governing traditional institutions in exchange for more accountability for student achievement.

They have sold about $580 million of munis this year through August, the most since $644 million in the same period of 2007. Issuance of the riskiest debt — about half the deals are unrated — has climbed even as charter defaults are set to be the most since 2009.

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