'biggest U.S. muni bankruptcy'

[Wallace]

'Judge may set workout deadline in biggest U.S. muni bankruptcy'
by Michael Connor Tue May 7, 2013

"(Reuters) - Alabama's Jefferson County will brief a federal judge on Thursday on
its progress toward exiting from bankruptcy, as the county appears likely to become
the first big U.S. local government to impose losses on bondholders since the 1930s.
The case is seen as a testing ground for how bondholders fare when a local issuer
breaks under excessive financial pressure. Jefferson County's $4.2 billion
bankruptcy filing is the largest such municipal case in history, the result of debts
taken on in a costly overhaul of the county's sewer system."
http://www.reuters.com/article/2013...W620130507?feedType=RSS&feedName=businessNews

 

[Bob111]

Loffredo, whose fund has a bit more than 2 percent of its assets in Jefferson County warrants and other county debt, said it is unclear whether bondholders or insurance companies that "wrap," or guarantee, the bonds, will bear the losses.

it's sounds like some of the holders will be out unscratched-

Jefferson County has struck deals with creditors Ambac Assurance Corp and Depfa Bank Plc on some claims, but has complained that big creditors such as JPMorgan and Bank of New York Mellon (BK.N) show little willingness to compromise.

while rest of them(retail and others) might be f***d. business as usual.

 

[S2007S]

Stocks and wallstreet don't care for this news as markets touch historical highs yet again!

 

[brokerboy]

there are a lot of things the market doesn't care about until it cares about it.

Quote from S2007S:

Stocks and wallstreet don't care for this news as markets touch historical highs yet again!