Insolvency and Restructuring partner Craig Barbarosh spoke with Debtwire on law firms shoring up their public finance and restructuring practices to prepare for a recession and its impact to the municipal market. He noted that the current supply/demand market dynamic in munis is an issue, and that high liquidity, low supply and cravings for yield have allowed more speculative, higher-yield transaction projects to be financed that, under other circumstances, may not have been successful. However, Craig added that indicators are proving problematic, even beyond the municipal market. "The global economy isn’t as strong as the domestic economy, corporate profits are strong, but not robust. Further, the yield curve inversion and unease surrounding a potential recession are also causes for concern."

Additional indicators include project finance deals, which along with the health care and higher education sectors, are experiencing ongoing distress. Craig stated, "Will they have problems? It’s something people are looking at, including us. Looking at the economy, we’re seeing a number of increases in strain throughout the system, and a lot of these muni finance deals may have sort of pushed the boundaries of expectations in terms of performance." ("Law firms expand public finance, restructuring expertise in preparation for the next decade of municipal distress," September 13, 2019)