Eye On The Market

The Arc and the Covenants

May 17, 2018

Michael Cembalest takes a unique look at US states, cities, and counties using his signature comprehensive debt ratio. While municipalities have time to address underfunded obligations, some face difficult trade-offs. Legal precedent shows that bondholder losses exceed pensioner write-downs. Given complacent conditions in credit markets, this is a good time to review muni diversification. Read more: jpmorgan.com/jpmpdf/1320745513818.pdf

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