"In contrast to his demands from retirees. Orr said he reached an agreement with global banks UBS AG and Bank of America/Merrill Lynch to take 75 cents of the dollar for $379 million in swap agreements. "The Detroit bankruptcy is the largest municipal bankruptcy in the history of the U.S. It has created a bittersweet panic on Wall Street, where investors are selling Detroit’s General Obligation Bonds (GOB) at bargain basement prices. "Over $13.7 billion in municipal bonds overall have been sold off in the last eight weeks amid speculation about Detroit’s situation, and Orr’s first-time designation of GOB’s as “unsecured debt,” according to the Wall Street Journal. The Journal also notes, however, that the sell-offs will result in “high yields” for investors." - See more at: voiceofdetroit.net/2013/07/21/orr-jones-day-aim-bankruptcy-gun-at-detroit-retirees-let-wall-street-off-hearing-mon-july-22-9am/#sthash.tEngnj1t.dpuf
Posted on: Tue, 23 Jul 2013 05:09:00 +0000