ILL back in the market today with $360Mish sales tax backed Build ILL bonds…trimmed size of tax exempts, raised taxables by 10M…the 10-year in deal landed at 45 basis point spread to AAA with 5% cp, compared to 40 bp spread, 4% cp last month & half of the 89 bp spread in 2018
one more time, in english, which sometimes I forget how to speak…state's 2nd foray into market with remainder of nearly $500M deal fared along same lines as last month & that was good news as the spread to what a top rated borrower pays is at best levels in very very long time.
When the Bond Houses reflect positively on actions a state has taken to better the bottom line, good things happen. Is the state out of the woods? of course not…pensions will be a large cross to bear for the considerable future. But compared to the Rauner years where the state literally was about to go to junk status the progress has been remarkable.
I remember the days when positive financial news would be responded to by the former governor as ‘we still stink and Illinois is not a good place to do business’. And that was after he forgot Rivian even existed.
The Governor is the salesperson for the state and should extol the virtues of Illinois at every opportunity even while acknowledging through legislative and policy initiatives that there is still plenty of room to improve.
Gone are the days when our governor would tolerate if not condone governors from other states publicly trying to poach businesses and residents from Illinois. Now we’re telling Texans to come to Illinois where women have the right to make the most personal decision she will ever make.
Illinois, like Weebles, may wobble, but we won’t fall down.
== Progress has been remarkable? Amazing what Federal dollars can do to paper over structural deficits.==
If you’re referring to American Rescue Plan money, that can only be used for covid related expenses.
=== The Governor is the salesperson for the state and should extol the virtues of Illinois at every opportunity. ===
Not just the Governor, but also and particularly the Illinois Chamber of Commerce and their CEO, Todd Maisch.
Todd Maisch badmouths Illinois’ business climate at every opportunity, but he’s mute when there is good news about the business climate in Illinois.
That’s not only encouraging his own members to leave the state - putting his organization in a weaker position - it means those businesses remaining in Illinois have fewer B2B customers to generate income. It might help him gin up PAC donations in the short term, but in the long term it is a losing strategy.
Also, if I were the CEO of a health care system reading Maisch’s anti-mask, anti-vaccine positions, I’d ask for my membership dues back. If Maisch wants to work for DeVore, let DeVore pay his salary, right now Maisch is putting health care workers in particular at risk.
I think the State will use a good portion of the Fed Money for the unemployment fund deficit. No need to pay it back until the interest starts. Plus they are probably hoping the Feds change their tune on paying it back.