Heads Up!

DETROIT:  it appears the biggest bankruptcy in municipal history is just around the corner.  The city’s emergency manager says Detroit is insolvent and it plans to suspend debt payments which could trigger a Chapter 9 Bankruptcy filing in a matter of months. 



Municipal bond investors have known for some time that Detroit was in trouble.  Detroit’s municipal bond prices have fallen dramatically.  But, it remains unclear to what extent this most recent development is factored into the nationwide municipal bond pricing.

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