Search results for: detroit

Detroit bankruptcy — One year later

Ability is not the same as willingness to pay. Political pressures continue to influence the Bankruptcy process, potentially to the detriment of bondholders and leaving politically-connected stakeholders more equal than others.

Tagged with: Fixed Income, New Tax Regime

Detroit and Stockton are game changers for municipalities in fiscal distress

Contrary to past experience and conventional wisdom, general obligation bonds are not sacrosanct and very low recovery rates are possible. Pensioners and other politically favored classes are likely to be treated more kindly than bondholders.

Tagged with: Fixed Income, Investing, Muni Perspectives Blog

Municipal pension obligations: Why fear about underfunding may be unjustified, and why Chapter 9 will never become pervasive (save a few outliers)

Concerns about plan solvency are widespread and attention-grabbing, though perhaps unjustified. Collectively, pension funded ratios have declined at the state and local level, though the cost of funding actuarially required contributions remains manageable as a percent of governmental spending.

Tagged with: Fixed Income, New Tax Regime

Detroit and Stockton are game changers for municipalities in fiscal distress

Are the Detroit and Stockton bankruptcies and how they were handled representative of what’s to come? Here muni senior analysts Ty Schoback and Michael Taylor discuss these cases and Chapter 9 more broadly, especially concerning trends in recovery rates for bondholders.

Gut check: The outlook on fixed income

The next big move in rates may be triggered by concerns about possible future Fed rate hikes. High-quality bonds may struggle to generate coupon-like returns.

Tagged with: Fixed Income, Investing

Puerto Rico’s double-downgrade

What’s behind the downgrade of Puerto Rico’s credit ratings by Standard & Poor’s and Moody’s? The double-downgrade puts pressure on Puerto Rico to shore up its finances in the coming weeks.

Tagged with: Fixed Income

Navigating the municipal bond market

In recent months there has been a lot of concern and anxiety in the municipal bond market, and investors remain skittish. Although the general trend in municipal credit is positive, investors should be mindful of the risks associated with Puerto Rico municipal bonds.

Tagged with: Fixed Income

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