Fixed Income

Jefferson County Bankruptcy Is Unique

By Douglas J. Peebles November 11, 2011

Yesterday, Jefferson County, Alabama filed for bankruptcy—a move we had long anticipated. The County’s $4.2 billion in debt makes this the largest municipal bankruptcy in US history.

As we explained in an article that we published on April 4, 2011, we believed that a Jefferson County bankruptcy would be a unique situation and not a “precursor to a wave of municipal bankruptcies or defaults that will sweep the nation.” The bankruptcy in no way changes our analysis of the municipal bond market's current health.

Jefferson County Bankruptcy Is Unique
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