Bond Holders - Oakland County - DWSD

[Willi]

Anyone heard an update as to what Nuveen and BlackRock have
decided, wanted, settled for, discussed, etc., etc. ?

Nuveen Asset Management and Blackrock Financial Management issued
subpoenas to Oakland County records department regarding
the county’s relationship with the City of Detroit’s
Water and Sewerage Department.
The bonds worth several billion dollars are secured
– based upon the Water Departments ability to get revenue.
The large powerful Wall Street investment firms have a lot to loose.
ARTHUR SIEGAL wrote in dBusiness
“”The water department has apparently not set its rates high enough
to cover all the infrastructure improvements needed
over the next 5-10 years, it is possible, although perhaps unlikely,
that a Macomb-Oakland system might actually cost less to develop,
construct and operate than the existing water system would cost to upgrade.””
“”This much turmoil would seem to make the department’s recent request
for proposals less appealing to the financial community
than would previously have been the case.””

Nuveen


http://www.nuveen.com/Home/ResourceCenter/MunicipalBondInvestment.aspx?section=Benefits
Blackrock


http://www.blackrock.com/investing/s...blkTopic=bonds

[Willi]

It appears each individual water and sewer bond can be resold at a given price.
If enough are sold back, the Michigan Finance Authority
[[ aka The State of Michigan ...all 10 million resident taxpayers take a lump on the head)
will issue new debt with lower interest rates to purchase the tendered securities.

A shell game with 5 BILLION DOLLARS $$$$$ of real money , washed, cleaned, sanitized and reissued

Bond documents also warn several times that Detroit is at risk of filing Chapter 9 again.