Wednesday, December 22, 2010

Caulis Negris Redux

Remember our friend MBIA, once the owner of a vast portfolio of city liens via their misnamed Caulis Negris unit.  They are getting their due.

You know.  Virtually all of Bond Buyer is relevant here today. A story of Moody's dropping the debt rating of the Detroit Water and Sewer system over mainly "looming capital needs".  None of that here?  and not one, but two stories on financial/legal problems JP Morgan is having over their dealings with local governments and their bond insurers.  Boy do I have a deal for them.  Let's see what they will pay for a used parking system. No problems down the road, I promise.

andeven  more PWSA debt downgrades that nobody caught late last week.. likely amid the fallout of the Kenney resignation tempest...  note it was not a shift to credit watch negative which some wanted to make a deal of with the city.. that is just a warning. This was an actual downgrade across a series of bonds outstanding.  If you dig into it, lots of looming issues for the PWSA still lingering from the variable rate debt.  Backup letter of credit on that expires in 2011 which is just around the corner.   Again, maybe JP Morgan will help out on that. Oh wait, that's where this problem started, and restarted. This two degree rule is getting out of hand.

and nothing untoward, but it does highlight how close a margin the county's budget is operating at.. looks like Allegheny County floated $50 million in tax anticipation bonds earlier today.  So everyone pay their property taxes quickly, or drink an awful lot at the drink tax-reporting establishment of your choice.

and just following those water stories... look what made the local news.

2 Comments:

Anonymous Anonymous said...

About a town that quit making pension payments

http://www.nytimes.com/2010/12/23/business/23prichard.html?hp

Philly is mentioned, but not Pittsburgh.

Thursday, December 23, 2010 11:50:00 AM  
Blogger C. Briem said...

tweeted yesterday:

http://twitter.com/#!/chrisbriem

:-)

Thursday, December 23, 2010 11:57:00 AM  

Post a Comment

Links to this post:

Create a Link

<< Home