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Tuesday, July 24, 2012

Some perspective on the recent California bankruptcies « self-evident

Speakng of munis
Some perspective on the recent California bankruptcies « self-evident

  Probably the most sensationalized aspect of these events is how much debt will be impaired. In the wake of Meredith Whitney’s infamous call, any negative headline related to municipal bonds seems to conjure images of hundreds of billions of dollars of defaults in the minds of non-market participants. According to JP Morgan’s July 13, 2012, municipals commentary, Stockton has approximately $703.0 million of outstanding debt (excluding Mello-Roos, which are considered to be secured by special revenues and are expected to be paid in any case). Mammoth Lakes has $12.4 million of outstanding debt. San Bernardino has $223.1 million of outstanding debt.

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