About the Event

Puerto Rico’s Bankruptcy: Why it Matters to Municipal Debt Issuers and Investors

Sound the alarm bells! Puerto Rico is not just another one-off municipal finance catastrophe.

Without question, Puerto Rico’s PROMESA-driven settlements, allegations of invalidity, and legal decisions weaken fundamental and long-standing protections of sources of payment and security of municipal debt.

As the largest municipal bankruptcy in history plays out in courtrooms and mediation sessions, market participants are facing the impacts of precedent-setting legal decisions and highly orchestrated consensual settlements.

Municipal issuers will need to decide how best to raise capital to fund our nation’s infrastructure needs and investors will need to find new ways to avoid pitfalls and invest wisely in this new world order.

Among the many challenges they will need to address is the collapse of “special revenue” firewalls separating revenue bond security and payment sources from an obligor’s general credit.

Our afternoon summit will feature leading industry, rating agency, and regulatory professionals who will address head-on the ramifications of PROMESA.