Market Contagion

Market Contagion: How the Mismanagement of Puerto Rico’s Debt Restructuring is Adversely Affecting Municipalities Nationwide

The Puerto Rico bankruptcy, the largest by far in U.S. history, is adversely affecting not just Puerto Rico but municipalities across the country. The articles on this page highlight a number of the added difficulties and uncertainties that taxpayers, local, state & federal officials, and municipal investors face in funding municipal projects due to the mismanagement of Puerto Rico’s debt restructuring. The market uncertainty and adverse impact on municipal infrastructure projects will continue until consensual debt restructuring agreements with Puerto Rico’s long-term investors are reached.

Oral arguments heard in suit to void Illinois GO debt
(The Bond Buyer, 3/18/21)

State Supreme Court stage is set for challenge to Illinois GO bonds
(The Bond Buyer, 3/9/21)

State Bankruptcy Rises From Grave (opinion)
(Bloomberg, 8/19/20)

State Bankruptcy Revisited (opinion)
(National Affairs, Summer 2020 Edition)

Revived Illinois GO legal challenge poses credit risks
(The Bond Buyer, 8/10/20)

Challenge to $14 billion of Illinois GOs resurrected by appellate ruling
(The Bond Buyer, 8/7/20)

What Would It Mean If U.S. States Went Bankrupt? (video)
(CNBC, 5/18/20)

Spendthrift Illinois Races Toward Default: By trying to tax its way out of fiscal disaster, the state makes matters worse. There’s a simple solution. (opinion)
(The Wall Street Journal, 3/6/20)

Chicago’s Puerto Rican Bonds (opinion)
(The Wall Street Journal, 1/31/20)

Muni-Bond Ratings Are All Over the Place. Here’s Why; Amid fight for market share, ratings companies struggle to judge creditworthiness of financially troubled cities
(The Wall Street Journal, 12/6/19)

Petitioner resurrects effort to void $14.3 billion of Illinois GOs
(The Bond Buyer, 12/4/19)

$129 Billion Puerto Rico Bankruptcy Plan Could Be Model for States
(The New York Times, 9/27/19)

Puerto Rico’s financial woes are hurting US infrastructure (opinion)
(CNN Business, 8/29/19)

Why a Cleveland rating took collateral damage from Puerto Rico
(The Bond Buyer, 7/30/19)

Ripples From Puerto Rico’s Debt Crisis Reach the Mainland (opinion)
(Bloomberg, 7/2/19)

Constitutionality of $16 billion of Illinois bonds challenged
(Reuters, 7/1/19)

Cook County mulls securitization as revenue bonds face pressure
(The Bond Buyer, 6/10/19)

Puerto Rico ruling fires a volley at revenue bonds (opinion)
(The Bond Buyer, 5/30/19)

Illinois toll debt feels effect of Puerto Rico special revenue ruling
(The Bond Buyer, 5/13/19)

Rating Action: Moody’s places 8 ratings under review for downgrade in wake of recent court ruling on special revenue pledges
(Moody’s, 5/13/19)

Puerto Rico Debt Repudiation Raises New Risks for Munis
(Bloomberg, 5/3/19)

Puerto Rico Ruling Sends Shock Through $3.8 Trillion Muni Market
(Bloomberg, 4/12/19)

Puerto Rico ruling on special revenue bonds sparks negative credit outlooks
(The Bond Buyer, 4/12/19)

Court ruling in Puerto Rico bankruptcy fans revenue bond fears
(Reuters, 3/28/19)

How Puerto Rico’s financial storm is washing over the mainland
(Quartz, 3/8/19)

‘Question Everything’: Puerto Rico Hits $3.8 Trillion Market
(Bloomberg Law, 2/6/19)