The low interest rates create a dangerous situation for bond buyers.
The short squeeze seems to have been brought on in part by the actions of bond buyers.
Prospective bond buyers learned last week that the state deficit might double.
That act eliminated tax breaks to banks, then among the biggest bond buyers.
Still, in some ways, second-lien lenders could be better off than bond buyers.
He said the company strongly denied that it had ever misled bond buyers.
According to the Bond Buyer, there are $2.13 billion in bonds scheduled for sale.
"By keeping the letters they wrote to Citron private, it raises a question of their duties to the bond buyers."
"We wanted to get the equity into the hands of the bond buyers and preferred stock buyers."
Credit analysts said bond buyers did lose money because they would have demanded higher interest rates on the city's debt had they known the truth.