finance expert

Puerto Rico filed for bankruptcy protection May 3, the largest-ever American municipal debt restructuring in history. As the U.S. territory seeks forgiveness in $73 billion to assorted creditors, an expert at Washington University in St. Louis says the situation should serve as a dire wake-up call to the municipal bond market.

Given ongoing agitation by a chorus of elected officials, the stage may be set for a major overhaul, if not outright abolishment of the nation’s largest home mortgage financing operations, Fannie Mae and Freddie Mac. Radhakrishan Gopalan, who teaches finance at Olin Business School, tells Smart Money that the private market should be able meet home financing needs, in most cases.