States Contemplate Borrowing to Help Manage Pandemic’s Fiscal Impact – Pew

As Illinois lawmakers in May considered a budget for the fiscal year that starts July 1, they already faced an estimated $7 billion combined revenue shortfall for fiscal 2020 and 2021, in large part attributable to the COVID-19 pandemic. To help close that gap, the General Assembly adopted a spending plan premised on borrowing up to $4.5 billion from the Federal Reserve’s new Municipal Liquidity Facility (MLF)—with the hope that the state will be able to repay those funds with federal budget aid not yet approved by Congress. On June 2, the state announced an initial $1.2 billion of borrowing from the MLF.
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debtsor
5 years ago

https://www.bloomberg.com/news/articles/2020-06-08/citigroup-sees-illinois-bonds-already-pricing-in-worst-outcome   Citigroup Sees Illinois Bonds Already Pricing In Worst Outcome    “When it comes to Illinois bonds, Citigroup Inc. says the worst-case-scenario has already been priced in, Bloomberg News reported.”   * Priced in my a$$…the insiders are telling their clients to sell Illinois bonds while at the same time reporting that it’s a great time to buy because the worst outcome is already priced in (and getting more expensive to buy IL bonds too!)   * I think we’ve seen this all before…   “When the music stops, in terms of liquidity, things will be complicated. But as… Read more »

Last edited 5 years ago by debtsor

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