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Too early to know fallout from Jefferson County

Q

What effect, if any, will the municipal bankruptcy of Jefferson County, Alabama, have on its bonds?

B.G., California

A

James A. Klotz responds:

It’s too early to give you a specific answer, but the county’s choice to file for bankruptcy rather than opt for the restructuring package that was negotiated will most certainly raise its future borrowing costs.

Nov 15, 2011

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