Bond analysts: Detroit’s woes unlikely to spread
Jul 19, 2013, 10:51 PM
(AP) – Though a big deal for Detroit, the nation’s largest ever municipal bankruptcy filing may have little effect on the ability of most U.S. cities to borrow money.
Municipal bond analysts say investors may be a little jittery about bonds issued by other financially troubled cities. But they say investors also are more focused on the financial stability of individual municipalities than they were before the financial crisis hit five years ago. That means Detroit’s woes are less likely to carry over.
New data show most cities are in better financial shape now than just a few years ago.
Figures from McDonnell Investment Management show nearly half of all cities had net general fund deficits in 2010. But preliminary figures for 2012 show that fell to less than one-third of cities.
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