The Texas city's latest projection for the onset of a Level 1 emergency comes as water woes spurred rating downgrades and negative outlooks since last fall.
The $14.6 billion budget calls for hiring police and Olympic-focused infrastructure spending after last year's spending plan proposed layoffs.
MBIA says it isn't responsible for what its subsidiaries did.
The risk of contagion to the rest of the high-yield market is limited, investors said.
The Middle East conflict sent oil prices higher, potentially benefitting energy producing states, although heightened inflation risks could hit budgets.
Market support for taxables, particularly those from active issuers, remains firm. Taxables are seeing gains of 1.08% year-to-date, or 50 basis points above a UST index gain, said Kim Olsan, senior fixed income portfolio manager at NewSquare Capital.
