Ty Schoback is an analyst at Columbia Management Investment Advisers, LLC (CMIA), focusing on state and local general obligations, pooled loans, and public power credit analysis. He joined the firm in 2008 and has been a member of the investment community since then.
Mr. Schoback earned a B.S. in finance from Winona State University.
The State of Michigan’s failure to preserve the integrity of the General Obligation (GO) pledge in Detroit has greatly undermined the market’s confidence in debt issued within Michigan. It has also resulted in increased borrowing costs for other Michigan entities. The State communicated to investors the UTGO security pledge of local governments should not be
We believe Detroit’s bankruptcy filing does not represent a material threat to the broader municipal market. Any precedent set from Detroit’s Chapter 9 filing will be of limited value beyond Michigan’s borders. We continue to believe that municipal bankruptcies will be rare events. Last week Detroit filed the largest municipal bankruptcy in U.S. history. Detroit’s
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