IPFS News Link • Government Debt & Financing
Chicago on Brink of Bond Market Shutoff: Tax-Exempt Yield Hits Stunning 8.50%
• http://mishtalk.com, mishgeaOn January 27, the CBOE Canceled an $875 Million Bond Offering due to hostile conditions. At that time, I commented "Will the yields be any lower tomorrow? Next week? Why?"
Today, we have the answer: Chicago Public Schools Gets Sale Done at Big Penalty.
Battered by negative headlines about its solvency, labor troubles, and a state takeover threat, the Chicago Board of Education returned to the market Wednesday after a one-week delay to price a scaled-down deal that offered a hefty high yield of 8.50%.
The district initially planned last week to offer $875 million of general obligation paper, including $795 million in a tax-exempt tranche and $80 million of taxable securities.