Bloomberg Business turns to Rich Ryffel, Olin senior lecturer in finance, in a report on the default of $12 million of bonds in Memphis. The article, “Buyers Sing Blues After Memphis Bond Default Goes Unrecognized,” notes that news of the default did not reach many investors who continued to buy the bonds for as much as 110 cents on the dollar before prices plunged to less than a quarter on the dollar.

Read the article to find out why the state and municipal bond market remains so opaque and risky for small-time investors.