Muni Market May Penalize Michigan for Detroit Bond Treatment

July 2, 2013

As Detroit's emergency manager Kevin Orr made the decision to suspend debt payments on bonds he considered unsecured, investors weighed in on the likelihood that Orr's move could endanger the full repayment of debt across the state, meaning higher interest rates for other Michigan municipalities. In an interview with MoneyNews, municipal bankruptcy expert Jim Spiotto explained how the state's constitution may come into play in such an event. Click here to read the full story.