CHAPTER 9: ENTERING A NEW ERA?

As fiscal pressures mount and retirement obligations loom for cities and local governments across the country, a growing chorus of outside observers is forecasting a surge in the “nuclear option” of Chapter 9 municipal bankruptcies.  And as investors and analysts come to terms with the prospect of a fundamental change in credit quality, a debate is ranging about potential market impacts.  Our panelists will share their views on some of the key questions, including:

• How should bondholders expect to be treated in bankruptcies driven by employee benefit costs?
• Is it appropriate for politicians to threaten bankruptcy to extract concessions from unions and other interest groups?
• What indicators can investors follow to help identify bonds that are vulnerable to bankruptcy filings?