Jefferson County Bankruptcy Is Unique

Douglas J. Peebles

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.

2 comments

  1. David Forman

    What and how much will be the settlement? Who pays and who gets the pain?

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