Regional News
Detroit's Long-Term Liabilities, Interest-Rate Swaps, Pose Threat to Operations
Thursday, February 21, 2013
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If Michigan Gov. Rick Snyder appoints an emergency manager for Detroit, that person will tackle $15 billion of long-term debt liabilities and try to maneuver around a $440 million swap termination payment.

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Before the financial crisis of 2008-09, it would have been significant news if yields on municipal bonds had exceeded those on Treasury securities at any maturity, and that occurrence likely would have attracted a variety of investors seeking to take advantage of the relative-value opportunity.

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