Municipal bond defaults increased to record levels last year, as Detroit's bankruptcy boosted the total.

Municipal Market Analytics data as of Jan. 9 show $9.02 billion in monetary defaults for the year, up from $8.57 billion in 2013 and $1.95 billion in 2012. The 2014 par value was the highest since MMA's Default Trends was founded in 2009,  according to managing director Matt Fabian. Before that, monetary defaults on municipal bonds had been relatively rare since the Great Depression.

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