bonds en Detroit's bankruptcy & the municipal bond market <p>The judge’s decision to let the city of <a href="">Detroit pursue Chapter Nine bankruptcy protection</a> could have an effect on the municipal bond market.</p><p>Municipal bonds have long been viewed as one of the safest investments out there. But bond holders may be among the biggest losers in Detroit’s bankruptcy.</p> Wed, 04 Dec 2013 13:43:00 +0000 Steve Carmody 15528 at Detroit's bankruptcy & the municipal bond market Detroit taxpayers foot big bill for closed schools <p>Detroit property owners face a quarter century of payments for construction and renovation of school buildings that no longer operate.</p><p></p> Sun, 27 Oct 2013 23:19:16 +0000 Associated Press 15012 at Detroit taxpayers foot big bill for closed schools How Detroit is impacting the rest of the state’s finances <p></p><p>A few days ago, Michigan Radio’s Sarah Cwiek reported <a href="">a story</a> worth thinking about. The market for municipal bonds has nosedived since Detroit announced its intention to file for bankruptcy in July.</p><p>Now, if you would like a clear and concise explanation of how the bond market works … good luck with that. But essentially, communities sell bonds to raise money, bonds they pay off gradually with interest over time. They are a traditional and time-honored way of raising money for civic improvements.</p><p>There’s also been an understanding, at least since the Great Depression, that money owed to bond holders -- especially the holders of general obligation bonds -- was sacrosanct. No matter how hard things were, the bond holders had to be paid. Well, that’s not happening in Detroit, which, as all the world knows, has filed for bankruptcy.</p><p>Emergency Manager Kevyn Orr isn’t honoring Detroit’s general obligation bonds. And that has investors across the state spooked. Battle Creek and Genesee County have pulled back from plans to sell new bonds. So has affluent Oakland County. In fact, the value of all the municipal bonds sold in the state last month was the lowest in ten years. Something is clearly going on.</p><p> Wed, 11 Sep 2013 13:12:07 +0000 Jack Lessenberry 14371 at How Detroit is impacting the rest of the state’s finances The week in Michigan politics: Detroit bankruptcy and bonds <p></p><p>This week in Michigan politics, Jack Lessenberry and Christina Shockley discuss Governor Rick Snyder's agreement to <a href="">answer questions </a>about the Detroit bankruptcy filing to union lawyers, how the bankruptcy has affected <a href="">borrowing abilities</a> in other Michigan cities and a new investment program to impact social programs.</p><p> Wed, 11 Sep 2013 12:41:07 +0000 Jack Lessenberry, Christina Shockley & Emily Fox 14370 at The week in Michigan politics: Detroit bankruptcy and bonds Bond market cool to Michigan after Detroit bankruptcy <p>It looks like Michigan municipalities are finding the bond market a tough go after Detroit’s historic bankruptcy filing.</p><p>Michigan cities and school districts<a href=""> sold just $71.5 million worth of municipal bonds</a> in August.</p><p>That’s the lowest amount of monthly bond issues for the state since 2003. And it’s a sign that Detroit’s bankruptcy is hurting municipalities’ ability to borrow money.</p> Mon, 09 Sep 2013 22:39:26 +0000 Sarah Cwiek 14345 at Oakland County to move ahead with bond sale; other Michigan municipalities not so lucky <p>Oakland County is going ahead with a planned bond sale next week.</p><p>And according to county officials, they won’t be penalized for Detroit’s recent bankruptcy filing.</p><p>Oakland County has the highest bond rating possible—AAA. And officials say that’s allowed them to sell bonds at a reasonable interest rate, despite Detroit’s recent bankruptcy.</p><p>From the <a href="">Detroit Free Press</a>:</p> Fri, 09 Aug 2013 18:11:39 +0000 Sarah Cwiek 13921 at Will Detroit’s bankruptcy affect your hometown? <p>It’s a question many in local governments across the state have been asking themselves lately.</p><p>There are a couple ways Detroit’s bankruptcy could have a bad influence on other local governments.</p><p><strong>The simple way: not so good national media attention</strong></p><p>The simplest way is all that bad press the nation’s biggest municipal bankruptcy will bring. But Detroit’s finances have been screwed up for decades. That’s not news. Economists that track indicators in West Michigan say it won’t help, but they do not expect this to be a big factor.</p><p>The more important way Detroit’s bankruptcy could affect small governments is much more complicated.</p><p><strong>The complicated way: “unprecedented” threats to municipal bonds</strong></p><p>First, you’ve got to understand these bonds are really important to local governments. Fri, 02 Aug 2013 13:54:22 +0000 Lindsey Smith 13808 at Will Detroit’s bankruptcy affect your hometown?