In a Dec. 12, 2008 file photo, a pedestrian walks by graffiti in downtown Detroit. (AP Photo/Carlos Osorio, FILE)

NEW YORK (AP) — When Detroit became the biggest city in U.S. history to file for bankruptcy last month, it turned public attention to the municipal-bond market, where cities and states go to borrow money. Was this sleepy, often-overlooked area of the financial world actually dangerous?

Like other cities, Detroit borrowed from investors to pay for roads, sewer lines and an array of other projects. Now Detroit says it can’t afford to pay bond investors all of their money back.

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