Investor Warren Buffett said yesterday that he expects the market for Detroit's debt to pick up again and bond insurers to begin backing the debt once the city submits an appropriate recovery plan to bankruptcy court, Reuters reported yesterday. Buffett's Berkshire Hathaway Assurance Corp. re-insures more than $380 million of Detroit's secured sewer debt that was originally insured by Financial Guaranty Insurance Co. The city, which is awaiting a decision from a federal judge on whether it is eligible for bankruptcy, has $18.5 billion in debt and liabilities. Detroit still has assets that appeal to investors, Buffett said. "The resources in terms of the people, the businesses, the history and the culture are all here to have a great city in the future," he said. "And it will require probably some sort of plan to readjust the debt of the past and ongoing expenses."
