Remember from my college days how it was literally said that Muni Bonds were one of the safest things you could ever invest in. Tell that to the people holding Detroit muni bonds, click here. 20 cents on the dollar!!!
Insurers, including Assured Guaranty Ltd. (AGO), are on the hook for at least 95 percent of the $2 billion of unsecured Detroit debt that wasn’t issued for city utilities, data compiled by Bloomberg show. Kevyn Orr, the city’s emergency financial manager, proposes paying investors less than 20 cents on the dollar on those bonds as the auto-industry capital bleeds cash.