Link: Vallejo, California Drafts Bankruptcy Exit – WSJ.com
This is a very important development. There’s been some talk lately about possibly allowing states to go bankrupt, but the implications of that are far from clear. We won’t know how bondholders, for example, end up getting treated on the municipal level in this particular case for a while yet. The potential impact on investors in municipal bonds is huge.
Meyers Wealth Management 