obgyn65
Thinks s/he gets paid by the post
Just heard that Detroit is going bankrupt. I have some munis from Michigan. Not sure what's going to happen to muni bond holders.
In recent weeks, as Detroit officials have proposed paying off small fractions of what the city owes, they have indicated they intend to treat investors holding general obligation bonds as equal, in essence, to city workers — a notion that conflicts with the conventions of the market, where general obligation bonds have been seen as among the safest investments.
Believe I heard Detroit is $700M in debt just to the city employees pension plan. How did they get in that position?
Are they issued by the City of Detroit or by the State of Michigan? If the State issued them, the Detroit bankruptcy is irrelevant.
Oby, they will most likely be redeemed once they reach maturity. Despite the headlines, most bonds are paid. If you have doubts you can check the market price for your bonds to see if they have declined.Hello Gumby - please see the quote below. I have munis from Michigan (not City of Detroit per se), and not sure what's going to happen to them.
Oby, they will most likely be redeemed once they reach maturity. Despite the headlines, most bonds are paid. If you have doubts you can check the market price for your bonds to see if they have declined.
Oby, they will most likely be redeemed once they reach maturity. Despite the headlines, most bonds are paid. If you have doubts you can check the market price for your bonds to see if they have declined.