Gross Joins Bond Investors in North Las Vegas Crosshairs
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Nevada lawmakers are studying the unprecedented step of penalizing bondholders as North Las Vegas, the state’s fourth-largest city, faces insolvency.
Once among the nation’s fastest-growing municipalities, the city located less than 10 miles from the famed Strip has seen its property taxes collapse 70 percent since 2009. Funds run by Bill Gross, co-founder of the world’s biggest bond manager, hold almost a fifth of the municipality’s $420 million in general obligations, data compiled by Bloomberg show. The bonds were cut to junk by Standard & Poor’s in March after a judge ordered the city to pay unionized workers raises withheld during a fiscal emergency declared two years ago.