Relentless Municipal Distress

Municipal governments in the U.S. are in a precarious financial situation. Tepid economic growth combined with changes in state aid signal continued revenue weakness. The cost of meeting pension and healthcare obligations is crowding out key services and infrastructure spending. In the face of these challenges restructurings (both in and out of court) are inevitable; and continued efforts to deny this will only increase the severity and duration of those restructurings when they do come.