CHICAGO - The Metropolitan Water Reclamation District of Greater Chicago sold $427 million high grade paper at what a local bond trader calls a "fair" market penalty given the tarnished names of Chicago and Illinois. The district paid a penalty but it was not too steep given that most Illinois credits, even top ones, pay one for their location in a fiscally troubled state without a budget. The water district is further dinged for the Chicago name, said Brian Battle, director of trading at Performance Trust Capital Partners.
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