Town’s Bond Bankruptcy Raises Q for All

If a bankruptcy court rules that Vallejo, California’s credit enhancement program can’t be raided to satisfy bond investors, all muni bonds could lose out.

Enhancement programs are like collateral for municipalities’ loans. They lower the risk and therefore improve a bond’s rating and can lower the interest rate.

Read my story on this at www.iimagazine.com, the blog for Institutional Investor magazine. To find all 19 of my stoies on this site, just type Maureen Nevin Duffy into the search box.

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Tags: bankruptcy, CA, credit, debt, MBIA, muni bonds, municipal debt, NPFG, Vallejo

This entry was posted on October 5, 2010 at 8:04 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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