Not all bond holders get paid, however one's who bonds support a public pension will get paid. the courts and government have already shown a great disdain for the law (bankruptcy) and will pay one class before another even if the law specified other. Also, tax payers are on the hook for any and all failed bonded backed pensions.
I fully expect that energy companies have already started to diversify and buy into industries that could disrupt their earnings. Good successful corporations know when to move, RJ Reynolds is probably the best example of a company diversifying when its main product started to become a liability.
Private investors and tax payers are the only victims. The first because their investment is gone and the second who has to pay to fix the the public employee pension funds that may have purchased the same bonds which means the first party is actually stung twice
I fully expect that energy companies have already started to diversify and buy into industries that could disrupt their earnings. Good successful corporations know when to move, RJ Reynolds is probably the best example of a company diversifying when its main product started to become a liability.
Private investors and tax payers are the only victims. The first because their investment is gone and the second who has to pay to fix the the public employee pension funds that may have purchased the same bonds which means the first party is actually stung twice