Rapidly rising municipal bond interest rates further complicated the intricate Harrisburg debt reduction plan, said the lead attorney for the state-appointed receiver in Pennsylvania’s financially crippled capital.
“Bond market conditions made it more difficult. Costs went up. We had to go through another round,” Mark Kaufman, a partner and co-chair of the municipal reform and innovation practice at Atlanta-based McKenna Long & Aldridge LLP, said in a lengthy interview. “The bond market was working against us.”