Concerns linger over large state debt as a new report released today, by the Kellogg School of Management, estimates an additional $574 billion is unfunded liabilities from pension plans at the city and county levels.
“The municipal market, much like the rest of the financial markets over the last few years are getting a huge amount of scrutiny. And things that have always been the case are being questioned," Alexandra Lebenthal, president and CEO of Lebenthal and Co., told CNBC's "The Strategy Session"on Tuesday.
“We are seeing a lot of pressure—whether its pensions, whether its municipal budgets—and it can’t just be politics as usual," Lebenthal said, adding, "overall I don’t have a deep concern of default."
Take the New York City crisis in the mid-1970's: "The courts said hardship is no defense. You have to pay your bonds ahead of police, ahead of firemen. That actually set the president," she said.