Article Image

IPFS News Link • Government Debt & Financing

Chicago on Brink of Bond Market Shutoff: Tax-Exempt Yield Hits Stunning 8.50%

• http://mishtalk.com, mishgea

On 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.


Agorist Hosting