VIDEO: Muni board watching general obligation debt in Detroit case

The municipal bond market’s self-regulator said the Detroit emergency manager’s proposed treatment of general obligation bonds in the city’s bankruptcy case risks changing how investors view what has long been considered the safest class of municipal debt. Kevyn Orr, Detroit’s state-appointed manager, has said that general obligation bondholders will remain unsecured creditors in the $18.5 billion bankruptcy filing.

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