This bankruptcy will affect the price of the 50 million in new sewer infrastructure bonds the city wants to float.
Comment from the Wall Street Journal/Kelly Noland, 11/29/11, "Muni Market Sounds Alert". The bankruptcy filing of Jefferson County, Ala., has caused alarm bells to ring in the municipal-bond market. Lawyers for the county, which in November filed for what could become
the largest municipal bankruptcy in U.S. history, are arguing that
holders of $3 billion in debt used to finance a sewer project should be
forced to wait for their money along with other creditors. That
has caused a stir in the market because the sewer bonds are classified
as revenue bonds. Those bonds are considered among the safest to own
because they are backed by a specific revenue stream.Submitted by Jim Wagner
Posted by Kathy Meeh
1 comment:
maybe this bond sale will go better then the fill the pension bucket bond sale!
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