San Bernardino bondholders lose out versus Calpers: Muni Bond Holders Learn They Aren't As Important As Public Pensions

Reuters reports:

An attempt by holders of bonds issued by bankrupt San Bernardino to win the same treatment accorded the city's biggest creditor, state pension giant Calpers, was rejected by a federal judge on Monday, in a ruling the judge called "tentative."

The ruling comes three days before the southern California city of San Bernardino produces its bankruptcy exit plan, which, if confirmed, would appear to clear the way for the city to slash its bondholder debt. The city has already said that it intends to pay Calpers, which has assets of $300 billion, in full.

CALPERs sure is special!