DETROIT / Bloomberg Detroit’s public schools have reached their borrowing limit and won’t be able to take on more debt to pay bills when money runs out in April if Michigan lawmakers don’t restructure some of its $2 billion of obligations, state officials said. Though the district has borrowed when it ran out of money before, it has reached the …

Bloomberg The Real declined after Brazil’s debt rating was lowered to two levels below investment grade by Moody’s Investors Service, which cited the government’s failure to reduce its fiscal deficit amid deepening political turmoil. The currency dropped 0.7 percent to 3.9864 at 9:50 a.m. in Sao Paulo. The outlook for the rating is negative, Moody’s said in a statement on …

PUERTO RICO / Bloomberg Puerto Rico’s debt exchange isn’t the only security swap for investors burned by the island’s financial collapse. Franklin Resources Inc. plans to close the $147 million Double Tax-Free Income Fund, whose strategy of plowing more of its assets into Puerto Rico than any other municipal-bond fund turned it into one of the worst performers. After the …