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Detroit and bond insurers make a deal

  • The agreement with Assured Guaranty (AGO +2.2%), Ambac (AMBC +1.2%), and National Public Finance (MBI +1.8%) is an important one as - in what would have been a precedent-setting move - Detroit had asked a court to treat its general-obligation debt as unsecured and allow a recovery of just a few cents on the dollar, while treating debt owed to pensions
  • Instead, $287.5M of $388M of debt in question will be reinstated at par, and the remaining paper will be assigned to establishing an income stabilization fund for the city's "most vulnerable retirees."
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Comments (4)
  • DeepValueLover
    , contributor
    Comments (8682) | Send Message
     
    Actually...not a bad deal.
    9 Apr, 12:12 PM Reply Like
  • zagman
    , contributor
    Comments (41) | Send Message
     
    Anyone stupid enough to do business with Detroit should not complain!
    9 Apr, 04:48 PM Reply Like
  • TimeOnTarget
    , contributor
    Comments (2816) | Send Message
     
    If I had the means a few years ago, I would have liked to have bought the Pontiac Silverdome (which sold for $550,000) and then just opened the sucker up--put up signs that said "Welcome, Please Come In and Make Yourself at Home." Kind of like a practical joke.
    9 Apr, 08:40 PM Reply Like
  • The Long Tail of Finance
    , contributor
    Comments (779) | Send Message
     
    If you're into playing the monoline insurer renaissance, I would check out SYCRF as a speculative play.
    9 Apr, 09:02 PM Reply Like
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