The New York Times has an article which points to the challenges facing mainland municipal bond issuers and how Puerto Rico’s debt crisis may just be the tip of the iceberg.
Deferred costs and infrastructure projects are not just issues for Puerto Rico, but Flint, Washington D.C. and East Cleveland. Pension promises from years ago will be a burden for years for Illinois, New Jersey and Philadelphia to mention just a few.
Puerto Rico may seem to be a distant island with unique problems. Upon closer examination, the problems facing the U.S. Territory are very similar to the challenges facing many municipal bond issuers.
