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  #141  
Old 08-31-2012, 10:46 AM
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Governor Pat Quinn set a new record for credit downgrades, when the credit rating agency Standard & Poor's lowered Illinois' credit rating Wednesday, Aug. 29. Since becoming Governor in 2009, Quinn has presided over 10 credit downgrades, which now represent more downgrades that the previous four governors combined.
At least he's not in prison.
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  #142  
Old 08-31-2012, 11:31 AM
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  #143  
Old 09-19-2012, 05:40 AM
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http://www.cbsnews.com/8301-505245_1...e-to-negative/

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TRENTON, N.J. — The New York financial ratings agency Standard & Poor's lowered its outlook on New Jersey from stable to negative on Tuesday, based on the state's continuing budget imbalance and revenue projections for the fiscal year that began July 1.

S&P did not revise its ratings on the state's general obligation bonds or other debt, citing New Jersey's credit-worthiness and commitment to repaying its debt obligations. But the agency warned that a future downgrade is possible.
....
Moody's affirmed New Jersey's bond rating and stable outlook on Monday; Fitch was first to do so on Friday.
....
S&P also assigned a negative outlook to nearly $400 million in outstanding construction bonds and notes for school facilities but kept its A+ rating.
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  #144  
Old 09-26-2012, 12:57 PM
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http://www.bloomberg.com/news/2012-0...tcy-looms.html

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Atwater, California, is going broke under the weight of public employee costs, lost revenue and a stagnant economy, pushing it toward becoming the state’s fourth city to seek bankruptcy protection.
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“We just started negotiating with our unions and they are going to have to take a major cut,” Faul said. “We hope that once we declare a fiscal emergency, that they will realize that we are definitely in an emergency. If they want to save all the jobs, everyone is going to have to take a cut.”

To make matter worse, the city is facing a $2 million payment on municipal bonds in November, according to the budget documents.

Standard and Poor’s lowered its underlying rating on the Atwater Public Financing Authority’s wastewater revenue bonds to BBB- from A on Sept. 24, citing the city’s potential move toward bankruptcy.
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  #145  
Old 11-14-2012, 06:11 PM
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http://www.cnbc.com/id/49815214/Inve...e_Fiscal_Cliff

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Investors are barreling into municipal bonds, driving yields to record lows and hoping for a safe hiding place at a time when taxes are almost certain to rise.

From Nov. 7 to 12, about $500 million of new money flowed into muni bond funds, according to Lipper U.S. Fund Flows. That compares to $866 million for the entire week ended Nov. 7 and is about the same as the four-week moving average.

“The argument that’s been made for at least the last six months, is that on relative value basis, it’s better to buy a muni than a Treasury because it’s tax-advantaged,” said Peter Bianchini, managing director and senior municipal bond strategist at Mesirow Financial. “If you were to buy a triple-A-rated state versus the U.S. government, they’re both fairly safe credits. With the end of the election last week, there was this new sentiment — tax rates are going up.”

....
Investors have also been reacting to the strong possibility of a boost in the current, expiring 15 percent dividend tax rate. That could make investments, like municipals, an attractive alternative. It is also possible there will be a higher capital gains tax rate, another element of expiring Bush-era tax cuts. High-income tax payers will also automatically pay 3.8 percent more on certain types of investment income because of the Affordable Care Act, starting Jan. 1.

....
“The fiscal cliff strikes me two ways,” said Mesirow Financial’s Bianchini. “If taxes are going to rise, people should buy more munis. We’re seeing that already, but the other side is as part of the fiscal cliff, do we see some tax reform that eliminates the tax-exempt status of munis?” He does not see the elimination of the exemption as a likely outcome, but it had been raised by Romney. Bianchini said it might be more likely that the amount of income an investor could receive tax-free would be capped.

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  #146  
Old 12-17-2012, 01:11 PM
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http://www.pewstates.org/projects/st...es-85899436928

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Top finance officials in California and New York are proposing closer state-level scrutiny of local government budgets to help prevent the distress that has plagued many cities, towns and counties over the last few years.

California Treasurer Bill Lockyer says he wants the state to develop a warning system in which local government finances would be monitored and cities in fiscal trouble identified. New York Comptroller Thomas DiNapoli says he intends to initiate a scoring technique to categorize cities under the most strain. In this way, DiNapoli says, “local officials and the public would have sufficient time to discuss options for turning things around.”

....
Most intervention programs are reactive, meaning that state officials wait for a distressed city to request help. Lockyer and DiNapoli are advocating a proactive approach that spots problems before they escalate into a crisis. The California Legislature would have to approve Lockyer’s proposal; DiNapoli can implement his plan on his own though he has asked local officials for their feedback.

....
Lockyer emphasizes that he is not proposing that the state swoop into a city and take over its operations, as financial control boards have done in cities such as Philadelphia and Washington. Nor would California offer cities cash grants or assume payments for their debts. The state has its own budget problems. But at the very least, he says, the state should monitor local government finances and offer technical advice when cities are showing signs of strain. If California had such a monitoring system in the 1990s, state officials might have detected that Orange County’s interest income from risky investments accounted for a higher-than-average percentage of its revenues. That information could have indicated that Orange County was headed towards bankruptcy, analysts say.

Yeah, there are some seriously credibility issues coming from the state side, at least with respect to California.
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  #147  
Old 12-17-2012, 01:33 PM
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Question: How does one short muni's?
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  #148  
Old 12-20-2012, 11:51 AM
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Originally Posted by Stan View Post
Question: How does one short muni's?
CDS, but you need an ISDA master agreement (do you have $10mil in capital?)
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  #149  
Old 12-29-2012, 08:53 PM
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muni bankruptcies: a map

http://www.governing.com/gov-data/ot...-defaults.html
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  #150  
Old 02-22-2013, 02:30 PM
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http://www.reuters.com/article/2013/...0BKD8G20130220

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Feb 20 (Reuters) - Moody's Investors Service downgraded on Wednesday its rating on $359 million of Contra Costa County, California 2001 and 2003 pension obligation bonds to A1 from Aa3, noting concerns about the county's inability to raise taxes for debt service.
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