Media: Talking Municipal Bankruptcies on Marketplace Radio
Yesterday during my new regular gig as
commentator, I talked very generally about what the Harrisburg PA default might mean for the city and for other muni bonds around the nation. Marketplace Radio’s Morning Report
The key things to understand are:
1. Harrisburg’s Chapter 9 filing was widely anticipated, the muni market is certainly not shocked.
2. Most of the distressed muni issuers (less than 1/10 of 1% of total) had a failed project that cost too much and didn’t deliver, some are in over their heads with entitlements.
3. When a municipality defaults, there is usually good coverage for the bonds themselves, the creditors are pretty high up in the chain to be paid once things are restructured. Chapter 9, while not pleasant, is by no means an end of the world scenario for bond holders.
Josh Brown: Bankruptcy ‘not a pleasure cruise’ for municipalities (Marketplace)
This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.
The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.
References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.
Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers
Please see disclosures