"Since Detroit’s Chapter
9 filing in late July, it has slipped off the front-pages to some extent. The
Chapter 9 process is underway and Barclays provides a deep-dive look at the
various liabilities involved in the bankruptcy. From the pension obligation
certificates (POC), which they believe could be subject to the most volatility
over the course of the bankruptcy process and will likely recover no more than
30 cents on the dollar, Barclays' muni team expands on the various aspects of
the eligibility process, historical precedents (such as Stockton, CA), and the
tough decisions that investors face in deciding between short-term goal of
certainty of payment or a long-term goal of maximizing returns. The judge has
set a mid-March 2014 deadline for the city to file its plan of
adjustment."
