Harrisburg woes spark fears of muni crisis

Harrisburg woes spark fears of muni crisis

State buildings in Harrisburg, PA

Harrisburg, the state capital of Pennsylvania, narrowly avoided default on two general obligation municipal bonds in September, requiring a state aid package to meet its debt payments. The incident has prompted concerns over the creditworthiness of issuers across the US and speculation over the increased likelihood of a muni crisis

On September 1, Harrisburg announced it would be unable to meet a $3.29 million municipal bond payment due on September 15. Default looked likely until September 12,