WASHINGTON — Holders of debt issued by Detroit; Harrisburg, Pa.; Jefferson County, Ala.; and Stockton, Calif.; are unlikely to get outcomes even as favorable as investors during the Great Depression, according to a report issued Thursday by Moody's Investors Service.

While past defaults generally resulted from short-term liquidity issues, the most recent round reflect systemic issues more challenging to both overcome and make bondholders whole, according to Moody's analysts. Defaults during the Great Depression that began with the October 1929 stock market crash were largely the result of bank failures and resulting liquidity issues, the report notes. Bondholder recovery rates after the banks were reconstituted in 1934 reached 94%, Moody's said.

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