July 14, 2015
The Bond Buyer
Chicago shouldn't expect much of a break for resolving its credit deterioration-driven liquidity crisis when it sells $1.1 billion of tax-exempt and taxable bonds this week, as investors await a resolution on more daunting pension funding and budgetary ills. "As a buyer can it get any worse? This might be as cheap as it gets," said Brian Battle, director of trading at Performance Trust Capital Partners in Chicago, of the negative headlines over the city's pension woes, its fall to junk, a looming court decision on pension reforms, and questions over Chicago Public Schools' solvency. "Everyone knows they have to get the deal done. They are going to be price takers."
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