The state of Illinois had two milestone events recently. The legislature passed a long-awaited pension reform and the state treasurer issued $350 million of taxable general obligation (GO) bonds. The Bond Buyer reported on the GO offering:
Dear President Dudley:
Although it is a longstanding policy of the Federal Reserve not to intervene in the finances of state and local governments, it may be time to reconsider this policy in the case of Puerto Rico. A member of your board of directors, Richard Carrión the CEO and Chairman of Banco Popular de Puerto Rico, wrote to The Economist about the state of Puerto Rico’s finances:
The Bond Buyer has awarded its annual top prize for a muniland deal to a public private partnership (P3) that contracted with the Indiana Finance Authority to build the East End span of the Ohio River Bridges Project:
I met a muniland superstar, Pennsylvania State Senator John Eichelberger, in Philadelphia while taping a final segment on distressed municipalities for Pennsylvania Cable News (PCN). The series, hosted by PCN’s Corinna Vecsey Wilson, brought together municipal officials, state legislators and policy experts to examine the condition of the state’s distressed communities and look at what solutions might be available.
Fitch Ratings managing director Amy Laskey talked to Fox Business about how Detroit is a unique story in muniland. Fitch published a research note on the bankruptcy ruling and concluded that Detroit’s ruling would not lead to a “spate” of local bankruptcies in Michigan:
Detroit was ruled eligible for Chapter 9 bankruptcy protection on Tuesday. Twitter coverage of the federal eligibility hearing tracked the history. Here are the highlights:
Justin Vélez-Hagan is the executive director of the National Puerto Rican Chamber of Commerce, a small non-profit not to be mistaken with the much larger Puerto Rico Chamber of Commerce. Vélez-Hagan argues in a recent Forbes opinion piece that Puerto Rico must default on its debt: