Chicago’s Pension-Bond Plan Could Use a FAANG Rout – Bloomberg

The Windy City is again considering a risky strategy to shore up its retirement funds.
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NB-Chicago
3 years ago

With 100% of risk to be born by taxpayers in the age of covid..with zero cuts, zero layoffs, zero risk for the gov class….what could possibly go wrong? What moral hazard?…debts for dummies

Poor Taxpayer
3 years ago

Leave Chicago and Illinois ASAP.
Nothing but greed government workers and CROOKS.

ConcernedExpat
3 years ago

This strategy is akin to a retail investor trading stocks on margin. It doesn’t end well especially when your carrying cost is 6% to break even. Question though, to lower their costs why not go out further on the yield curve, could Chicago presumably offer up a 50 year, 70 year bond? Maybe the real question is who would buy these PO(S) bonds anyway. Eventually your credit runs out!

Governor of Alderaan
3 years ago
Reply to  ConcernedExpat

They only way Chicago could lower its borrowing costs is to back the bonds with sales tax revenue. GO bonds would carry a higher interest rate

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