Search results for: stockton

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

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.

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

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