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Chicago’s spread penalties in the primary market hit a new peak Thursday when it priced a $1.2 billion general obligation sale. The city’s tax-exempt spreads landed at 339 to 347 basis points over the Municipal Market Data’s AAA benchmark.
By: Mark Glennon* Illinois Sen. Christine Radogno (R-Lemont) took the lead with Senate President John Cullerton (D-Chicago) to negotiate the “grand bargain” budget proposal for Illinois now being widely discussed. Let’s review her record. I’ve spoken before several times to Radogno about the primary budget issue for Illinois — pensions. It was clear to me that she simply doesn’t know what she’s doing. It was strike 3. Let’s look at just two strikes against her already on the record. Strike 1 was the blatantly foolish or dishonest claim she made about SB-1, the last major attempt at state pension reform.
What has a three-quarter billion-dollar unfunded liability, is manually calculated on paper inside a Pennsylvania mountain, and costs taxpayers more money annually than the entire state budget of Florida? Answer: Federal employee pensions. Even Illinois – where the state’s #1 manufactured product is corruption – has the courtesy to show taxpayers all of the gory details about pensions. The books are open on all 700,000 public retirees at every level of government.
Illinois Senate President John Cullerton, D-Chicago, and Minority Leader Christine Radogno, R-Lemont, have teamed up to bring back “compromise” to Illinois politics.
Yields topped out at 6.20 percent for bonds due in 2038 with an infrequently seen 6 percent coupon. The city’s so-called credit spread over Municipal Market Data’s benchmark triple-A yield scale widened to 347 basis points for bonds due in 12 to 17 years and to 339 basis points in 2038, according to MMD.
The Chicago Teachers Union and its allies launched a series of demonstrations at schools citywide Thursday morning, joining a national effort organized by education labor unions and left-leaning advocacy groups to repudiate President-elect Donald Trump and his pick to lead the U.S. Department of Education.
Nippon Sharyo points to prototype difficulties and unspecified business concerns as the main reasons behind the layoffs.
“It’s stunning to me to think you would pay more than 2 percent,” said Marc Levine, chairman of the Illinois State Board of Investment, which has reduced its use of hedge funds. “That creates a huge hurdle to have the right alignment of interests.” Comment: ISBI under Levine has done great work getting expenses under control for the money it manages.
Illinois Attorney General Lisa Madigan’s office is suing the nation’s largest student loan company, alleging unfair and deceptive practices with lending and debt collection. The lawsuit filed Wednesday in Cook County seeks restitution and penalties. It names Navient Corp. and subsidiaries, including Sallie Mae Bank.
AFSCME members will vote between Jan. 30 and Feb. 19 on the strike-authorization question. If a majority votes “yes,” AFSCME’s bargaining committee will have the option of calling for a walkout that could cripple state government functions across Illinois’ 102 counties.
A Chicago lawyer who has advised industrial businesses and governments on energy-related issues for more than two decades said the 503-page bailout bill, which rewrote major provisions of both the Illinois Public Utilities Act and the Illinois Power Agency Act, should have received a more thorough review before becoming law.
Presented without comment.
Comment: The primary underlying cause is obvious — having a baby before you are in a committed relationship and have the financial means to raise a child.
Comment: Working exactly as intended.
Comment: Across the board incompetence in how the media are reporting the deficit. The public is reading a fictional debate.
As Mayor Rahm Emanuel on Wednesday defended four unpaid furlough days just imposed on Chicago’s public schools, the Chicago Teachers Union announced plans to join national protests against school spending cuts.
Cook County Board President Toni Preckwinkle on Wednesday stopped short of throwing the shortcomings of the Chicago Police Department at the feet of Mayor Rahm Emanuel, but said she wished he had done more, and done it sooner. Comment: Best to distance yourself from Rahm if you want to run for mayor.
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