Jefferson County Bankruptcy Is Unique
Yesterday, Jefferson County, Alabama filed for bankruptcy—a move we had long anticipated. The County’s $4.2 billion in debt makes this the largest municipal bankruptcy in US history.
As we explained in an article that we published on April 4, 2011, we believed that a Jefferson County bankruptcy would be a unique situation and not a “precursor to a wave of municipal bankruptcies or defaults that will sweep the nation.” The bankruptcy in no way changes our analysis of the municipal bond market’s current health.
What and how much will be the settlement? Who pays and who gets the pain?
Good question! I””ll respond in another blog post.