Chicago’s sale of $900 million general obligation bonds last week came at a high price and has some muni strategists worried about what comes next.For those keeping track, the website Chicago cops go to for informal murder and mayhem statistics, Hey Jackass!, has January's running total at:
Matt Fabian of Municipal Market Analytics wrote to clients Tuesday:
The deep price concessions made by Chicago to complete its $900M GO sale last week are a point of concern both for the city and for the market at large. Yields near or north of 6.0% represent spreads more than 100bps wider than the city’s last GO sale in January 2016 and are roughly double benchmark 5% AAA nominal yields.He notes that the city’s bonds are trading near Chicago Public Schools, which he thinks is appropriate, but it isn’t the way investors typically see things....MORE
January to Date
Shot & Killed: 43
Shot & Wounded: 201
Total Shot: 244
Total Homicides: 44
Shot & Killed: 43
Shot & Wounded: 201
Total Shot: 244
Total Homicides: 44
