Trend: Pension Liabilities Threaten Municipal Bonds. Bondholders v. Retirees.

The Economic talk: Do increasing local pension liabilities threaten to ruin bond holders?

Maybe. Probably yes. 

Why would local bonds be impacted by pensions? Looking at the bankruptcy fiings of San Bernardino, Stockton, Vallejo and Detroit shows that odds are highest that bankruptcy courts will fund pensions and will leave bond holders with $0.

Governing | Municipal Bondholders Beware