Ten years after: Detroit’s decade after exiting Chapter 9

Wednesday marked the 10-year anniversary of Detroit's exit from bankruptcy. Its Chapter 9 declaration in July 2013 was the largest municipal bankruptcy in U.S. history, and Detroit's comeback saga has been just as dramatic. The city emerged from Chapter 9 on Dec. 11, 2014. Its journey out of state oversight offers some lessons for other struggling municipalities, including that bankruptcy — which ultimately cost Detroit taxpayers $170 million in fees — should be a tool of last resort, but need not leave lasting stigma.

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Investors in U.S. seaports aren't worried — yet — about fallout from tariffs threatened by President-elect Donald Trump although shifts in trade policy combined with a potential labor strike could bring headwinds to the sector. "At this juncture I don't foresee any material credit deterioration," said Jeff Devine, municipal research analyst at GW&K Investment Management. "Generally speaking, ports have pretty low leverage and strong debt service coverage and really strong cash on hand."

From politics to disclosure to funding, the changing climate challenges muni issuers. Learn more in our Climate Spotlight 2024 package.

The lowest-rated cohort of New Jersey municipalities are on a trend of strengthening finances, according to a report from Moody's Ratings published Wednesday. Economic improvement, better management and stronger state support has helped the municipalities achieve their strongest finances in a decade, the report said. The cohort members — which include Newark, Atlantic City, Paterson, Irvington, Salem, Trenton, Pleasantville, Union City and Weehawken — have lowered their deficit spending and strengthened their pension contributions, according to the report. 

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A consumer price index that pretty much met expectations, but showed inflation remains sticky, should not deter the Federal Open Market Committee by cutting 25 basis points next week, analysts said. "CPI inflation for November was uncomfortably warm even though it was in-line with the consensus forecast," noted Scott Anderson, chief U.S. economist and managing director at BMO Economics. 

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The leadership of Washington D.C. is citing security concerns while appealing to Congress for a multi-million dollar increase to its budgetary request from the federal government.  

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