Muni Market Shaken By Puerto Rico Special Revenues Ruling

Law360 (February 16, 2018, 8:11 PM EST) -- Municipal bonds secured by pledged special revenue streams have long been prized as safe bets, but a recent ruling in Puerto Rico’s restructuring cases that payment on those obligations is not required in bankruptcy has riled investors and left legal experts confounded over a largely untested Bankruptcy Code provision.

Ever since 1988, municipal bond investors have taken comfort in a widely held assumption that special revenue bonds — debt instruments secured by a stream of public revenues and typically used to finance municipal projects — are...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.