I wouldn’t lend them one dime on an unsecured bond. They would have to put up a first deed of trust on a piece of property that I wanted or they could go pound sand. I don’t understand how the courts can put CALPERS ahead of everyone else. Any one who lends to a municipality is taking a horrible risk.
I don’t understand how the courts can put CALPERS ahead of everyone else.
They didn’t, the court gave them permission to give CALPERS a Big Haircut, the City decided to make CALPERS whole and give everyone else the haircut. There is a lawsuit on this already by some other bond holders.
“I wouldn’t lend them one dime on an unsecured bond. They would have to put up a first deed of trust on a piece of property that I wanted or they could go pound sand. I don’t understand how the courts can put CALPERS ahead of everyone else. Any one who lends to a municipality is taking a horrible risk.”
CalPers has already been told by CA courts that they are going to have to get in line with other creditors in municipal bankruptcies.