Category: Bankruptcy

America’s Cyprus, America’s Caliban: Part 4, From crimes would pardon’d be

7 March, 2014 (09:00) | Bankruptcy, Bonds, Cyprus, Default, Detroit, Municipal bankruptcy, Puerto Rico, sovereign guarantee, Speculation, US News | No comments

[Continued from yesterday's Part 3 and the preceding Part 1  and Part 2.]   By:David A. Smith   ”But this rough magic I here abjure, and, when I have required Some heavenly music, which even now I do, To work mine end upon their senses that This airy charm is for, I’ll break my staff, Bury it […]

America’s Cyprus, America’s Caliban: Part 3, I know how to curse

6 March, 2014 (09:00) | Bankruptcy, Bonds, Cyprus, Default, Detroit, Municipal bankruptcy, Puerto Rico, sovereign guarantee, Speculation, US News | No comments

[Continued from yesterday's Part 2 and the preceding Part 1.]   By:David A. Smith   “Now I will believe that there are unicorns…” ― William Shakespeare, The Tempest   So far, by referencing a Washington Post (November 30, 2013) article as base camp, we’ve seen that Puerto Rico is laboring under a mountain of debt that […]

America’s Cyprus, America’s Caliban: Part 2, ‘Twas a clever quibble

5 March, 2014 (09:00) | Bankruptcy, Bonds, Default, Detroit, Municipal bankruptcy, Puerto Rico, sovereign guarantee, Speculation, US News | No comments

  [Continued from yesterday's Part 1.]   By:David A. Smith   “Full fathom five thy father lies; Of his bones are coral made; Those are pearls that were his eyes: Nothing of him that doth fade, But doth suffer a sea-change Into something rich and strange.” ― William Shakespeare, The Tempest   As we saw […]

America’s Cyprus, America’s Caliban: Part 1, This thing of darkness

4 March, 2014 (09:00) | Bankruptcy, Bonds, Cyprus, Default, Detroit, Municipal bankruptcy, Puerto Rico, sovereign guarantee, Speculation, US News | No comments

  By:David A. Smith   “Hell is empty and all the devils are here.” ― William Shakespeare, The Tempest   A capital before the US was a country: old San Juan   Islands that are part of a larger nation always feel themselves different: whether Corsica with France, Taiwan with China (or without China), Hawaii […]

Whose risk is it, anyway? Part 4, If the funding ratio falls below 80%

16 January, 2014 (09:00) | Actuaries, Bankruptcy, Bonds, Detroit, investing, Kevyn Orr, Municipal bankruptcy, municipal bonds, Pension funds, public choice theory, Risk, Speculation, US News |

By:David A. Smith   [Continued from yesterday's Part 3 and the preceding Part 1  and Part 2.]   In the three days up to this point, we’ve discovered that the City of Detroit, not its employee-retiree pension funds, owns the risk of fund underperformance, meaning we have a classic case of moral hazard combined with principal-agent risk.  […]