By Otis Casey, credit analyst at Markit
Otis CaseyLast Tuesday, the city of Harrisburg, Pennsylvania announced that it intended to skip an upcoming payment of USD3.29 million on its general obligation debt that would make this the second largest municipal default of the year. Harrisburg was known to have some financial challenges, particularly around an incinerator project issued by Harrisburg Authority, a distinct municipal entity. Some municipal market observers had expected a possible default on the debt related to that project specifically. The default on the city's general obligation debt though ....