Detroit's Bankruptcy and Muni Bond interest rates

Yesterday's NY Times included a long essay discussing whether or not Detroit's bankruptcy was a model for a solution to Puerto Rico's $72 billion debt burden.

One of the individuals cited claimed that Detroit still has no access to the ordinarily muni market and that bond investors are reluctant to buy Michigan bonds. Is that true? Did the interest rate Michigan had to pay for short or long term borrowing go up as a result of Detroit's bankruptcy?

Thanks.

I infer that most of those who hold Puerto Rican bonds strong oppose the idea that Congress might let Puerto Rico declare bankruptcy. As I understand, Congress must change a law to allow Puerto Rico to request bankruptcy.

Detroit did hold it first sale of bonds since the bankruptcy last summer. With some backing from the state, the bonds were rated A, investment grade. But they offered a yield of 4.5%, which is more than a full point higher than most other similarly rated bonds.

http://www.crainsdetroit.com/article...since-emerging

I wouldn't buy Detroit bonds regardless of the yield. I doubt if it could sell any bonds not backed at least in part by the State, which apparently has exposure on the one series of post-bankruptcy bonds that were sold. I doubt that non-Detroit voters knew of the state's guaranties and would be really pissed if they did.

Dan Gilbert's interest in Detroit is a plus but large bond buyers probably won't bite just because of that.

The DPS mess sure doesn't help.