Studying Orange County Bankruptcy Finance Essay
I analyze the effect of budget stress on the budget structures of local governments. sudden investment losses of nearly 1. led Orange County to default on its debts and declare bankruptcy. This event study provides a descriptive analysis of one of the most extreme budget crises of recent decades. I use a synthetic control method. Years, Orange County finally got paid. On Saturday, the province made the final payment of a bond that helped it emerge from bankruptcy. I think it's very good news. The authors study the composition of the Orange County Investment Pool. They find that the pool was neither illiquid nor insolvent and that its financial condition did not give rise to bankruptcy. If the pool had not been liquidated, but instead had been allowed to follow its hold-to-maturity strategy, Orange County would not.,