CHICAGO -- Detroit’s controversial debt restructuring proposal, lumping the city’s general obligation bonds together with its least-secured debt, illustrates the need for clarity in a shifting municipal market, the director of municipal research at Breckinridge Capital Advisors said Wednesday.

“We don’t expect there to be some radical uptick in bond defaults, but we do think it’s worth watching how [legal bond] covenants play out in a restructuring or Chapter 9,” said Adam Stern, director of municipal research for the firm, said Wednesday in a conference call on Detroit.

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