Detroit Disciplined in Return to Bond Market After Bankruptcy
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Detroit found that investors haven’t forgotten the largest municipal bankruptcy in U.S. history.
The city sold $245 million of bonds Wednesday, its first offering since emerging from court protection last year. Tax-exempt securities due in 2029, which have the longest maturity, were priced to yield 4.5 percent, according to preliminary data compiled by Bloomberg. That’s almost 2 percentage points more than top-rated debt, even though the bonds have a secured claim on the city’s income-tax collections.