Go figure: Bonds issued by Michigan governments are appealing again.
"People have had more of a chance to digest the meaning of the Detroit story and differentiate it from other deals," a bond fund manager says.
Crain's delivers that news under a headline that starts with the phrase "Short memory."
Michigan municipalities are selling the most bonds since July, showing investors are warming to the state's debt after Detroit's record bankruptcy led to the postponement of at least $131 million of deals.
Localities from Michigan were offering $88 million of debt last week, data compiled by Bloomberg show. . . .
Demand for Michigan debt waned after Detroit's emergency manager, Kevyn Orr, took the unprecedented step in June of attempting to impose losses on general-obligation holders as part of a plan to fix the city's finances.
Buyers still expect above-average interest for investing in public projects here, reports Brian Chappatta of Crain's, though yields typically are down to 8 percent -- lower than last month.
Genesee County and Battle Creek are among governments with bond offerings that had been put off in August. And in Detroit, the Wayne County Economic Development Corp. sold $17 million in bonds last week to build senior housing in Grosse Pointe.
A Boston bond fund manager explains the refreshed outlook in Crain's:
"People have had more of a chance to digest the meaning of the Detroit story and differentiate it from other deals out there. There's a short memory in this market."
-- Alan Stamm
