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*** UPDATED x2 *** I think this is good news?

Wednesday, Mar 17, 2021 - Posted by Rich Miller

* I love the Bond Buyer. I just don’t always fully understand it

Illinois came to market Tuesday, earlier than expected, with yields lowered by as much as 25 basis points from price talk Monday, as investor demand for high-yield paper welcomed the lowest-rated U.S. state. New deals from Oregon also re-priced to lower yields and New York State sold tax-exempt and taxable general obligation bonds in the competitive market to strong demand.

Triple-A benchmarks were little changed in mixed trading as the primary did the talking. U.S. Treasuries rose ahead of the Federal Reserve’s FOMC meeting conclusion Wednesday while equities lost ground.

Investors sitting on the sidelines in the secondary since Friday got a sense of what the primary had to offer and new deals were easily digested and underwriters bumped levels with the state of New York selling exempts through triple-A levels.

A repricing of Illinois general obligation bonds saw bonds bumped by 12 to 20 basis points from preliminary pricing wires Tuesday and 17 to 25 basis points from Monday’s price talk.

Morgan Stanley & Co. priced $1.25 billion of general obligation bonds for the State of Illinois (Baa3/BBB-/BBB-/). Bonds in 2022 with a 5% coupon at 0.69% (~63 basis points above triple-A benchmarks), 5s of 2026 at 1.51% (+108), 5s of 2031 at 2.22% (+102), 5s of 2036 at 2.47% (+119), 4s of 2041 at 2.81% (+132), 5s of 2046 at 2.75% (a 25 bps bump from Monday and about +111 bps). The second two series, $150 million priced with 5% coupons in 2022 to yield 0.69%, 1.51% in 2025, and 1.70% in 2031. The $258 million priced with 4% coupons in 2022 at 0.69%, 2025 at 1.30% and 2031 at 2.22%.

Maybe Google Translate needs to add a Bond Buyer function. Any help?

*** UPDATE 1 *** OK, this helps. Paul Chatalas, Director of Capital Markets, State of Illinois…

“The State received such strong demand and investor confidence that the bond sale was accelerated. Illinois received very impressive results, including more than 700 orders from more than 130 different investors, including respected names that have not invested in the State for a decade. This led to a contraction of credit spreads to 115 basis points over the benchmark in the longest maturity, the lowest in several years. Investors recognize the State is emerging from a period of unprecedented turbulence due to a global pandemic, and the bond market recognizes the fundamental security of the State’s bonds. The State appreciates the heavy subscription from long-time holders of its bonds, and welcomes the new investors that Illinois is seeing.”

Background…

Today the State of Illinois sold three series of tax-exempt General Obligation Bonds totaling $1.25 billion, to provide funding for capital projects, including projects authorized under the Rebuild Illinois capital program, for accelerated pension payments pursuant to the state’s ongoing pension buyout program and for refunding.

The Rebuild Illinois capital program, enacted in 2019, is the largest infrastructure program in the State’s history and the first in nearly a decade. The historic Rebuild Illinois capital plan passed with bipartisan supermajorities to improve the State’s infrastructure and improve economic development. The plan will invest $45 billion in roads, bridges, railways, universities, state facilities and other projects, creating and supporting an estimated 540,000 jobs over the life of the plan and revitalizing local economies across the state.

The pension benefit acceleration program allows program participants to receive an accelerated lump-sum payment in lieu of the right to receive future pension payments. With today’s issuance of $100 million, a total of $750 million of the authorized total of $1 billion pension acceleration bonds will have been issued.

The $850 million tax-exempt Series of March 2021A Bonds mature in 2022 through 2046 and funds capital projects and the pension acceleration program.

The $150 million tax-exempt Series of March 2021B Bonds mature in 2022 through 2031 and fund IT projects, which by statute may not have bond maturities that exceed 10 years.
The $250 million tax-exempt Series of March 2021C Bonds mature in 2022 through 2031 and are refunding bonds expected to save the State of Illinois $21.8 million, or 8 percent savings on a present value basis.
The G.O. Bonds were offered in three separate series in a negotiated sale, with an aggregate true interest cost of 2.90 percent. The bonds are being issued as fully exempt from federal taxation and are rated “BBB-” negative outlook by Fitch Ratings, “Baa3” negative outlook by Moody’s Investors Service and “BBB-” stable outlook by S&P Global Ratings.

The bond financing was led by Morgan Stanley & Co. LLC, with Co-Senior Managers Cabrera Capital Markets LLC, J.P. Morgan, Siebert Williams Shank & Co., LLC, and Stifel. Co-Managers were Blaylock Van LLC, Mischler Financial Group Inc., North South Capital, Podesta & Co. and Rice Financial Products Company.

*** UPDATE 2 *** From our favorite Bond Buyer reporter…


  28 Comments      


*** UPDATED x1 *** Flags will be raised to full-staff on April 17

Wednesday, Mar 17, 2021 - Posted by Rich Miller

* Tuesday press release…

First Lady MK Pritzker and Governor JB Pritzker announced that beginning today, the State of Illinois will host a memorial at the Governor’s Executive Mansion to commemorate the lives lost to COVID-19.

Today, March 16, 2021, signifies one year since the first known COVID-19 death in Illinois. To memorialize this painful milestone and the tragedy of the last year, the First Lady commissioned an installation to honor to the Illinoisans who have died from COVID-19 since the onset of the pandemic. Illinoisans are invited to visit the installation and pay tribute to their loved ones by tying a ribbon that is provided on site at the perimeter of the installation.

“This memorial offers all of our fellow Illinoisans a space to mourn our losses, individual and collective, in the name of healing,” said First Lady MK Pritzker and Governor JB Pritzker. “Together, one year into this pandemic, we honor those we’ve lost, as well as all the loved ones they left behind. It is through remembrance that we will move forward as one Illinois, committed to a shared vision of prosperity and hope. May the memories of those we’ve lost guide the way and be a blessing.”

Illinois has lost more than 23,000 lives in this pandemic, including both confirmed and probable COVID-19 deaths as defined by the Centers for Disease Control. To commemorate this shared loss, the installation includes 102 wings representing Illinois’ 102 counties that together hold more than 5,500 ribbons, each representing approximately four Illinoisans who tragically lost their life to this virus. The ribbons are illuminated by glowing spheres that serve a twofold purpose: To remember the victims of the pandemic, while also representing the permanence of light in the darkest of times.

The memorial will be on display in the state’s capital city for one month, spanning from March 16, 2021, until April 17, 2021. The conclusion of the exhibit marks one year since Governor Pritzker directed all flags to be lowered to half-staff on all public buildings and grounds to honor those who lost their lives to COVID-19. Following the exhibit and the one-year anniversary of the lowered flags, Governor Pritzker will direct the flags to be returned to full staff on April 17.

*** UPDATE *** Pics from the governor’s office…

Pics from the SJ-R are here.

  11 Comments      


*** LIVE COVERAGE ***

Wednesday, Mar 17, 2021 - Posted by Rich Miller

* Follow along with ScribbleLive


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Schimpf doubles down on his worst idea ever while rewriting history

Tuesday, Mar 16, 2021 - Posted by Rich Miller

* From Jeff Berkowitz’s recent interview with Republican gubernatorial candidate Paul Schimpf

Schimpf: But the other mistake that Governor Pritzker made - and this goes back to the idea that we should have been focusing on either protecting our most vulnerable population and then also making sure that our medical capacity was not overwhelmed - is he used the positivity rate as his metric for deciding whether or not areas were going to be reopened, or whether they were going to have to shut down again. And the positivity rate should not have been the metric that we were using.

Berkowitz: What metric would you have used knowing what you knew in April of 2020?

Schimpf: I would say we needed to focus on the hospitalization rate. How are the are the number of people that are being hospitalized, is that increasing? […]

Berkowitz: And knowing what you knew then, not what you know, when do you suppose you would have made that decision to start relaxing as well started opening?

Schimpf: I wrote that letter and signed that letter in the middle of April.

Schimpf was referring to a letter that he and other Senate Republicans sent Gov. Pritzker on April 15 of last year.

* The claim about the importance of the positivity rate vs. hospitalizations is historically inaccurate. Here’s Dr. Ezike [it actually may have been Gov. Pritzker, but I’d need to go back and listen to make sure] on April 14 of last year

Perhaps the most accurate leading indicator of our progress is our hospitalization data. Right now, if someone is sick enough with a respiratory illness to need hospital care, then it’s likely that that person has COVID-19, whether or not they have been tested.

On April 6, the number of known COVID patients and suspected COVID patients totaled 3680. On April 10, that number was 4020. On April 11, it was 4104. On April 12 4091. As of today, it was 4283.

Hospitalizations peaked last spring on April 28 at 5,027. Hospitalizations didn’t drop below 4,000 until May 21. They didn’t drop below 3,000 until June 4th - 53 days after Schimpf would’ve let off the brakes.

In other words, Schimpf would’ve eased up on mitigations while his supposedly most important metric was still rapidly increasing and at the tail end of an enormous spike. That clearly would not have ended well.

By the way, IDPH didn’t even include the positivity rate in press releases by mid-April last year (I found that above Ezike/Pritzker quote while looking through media briefing transcripts). I checked with the governor’s office this morning and was told the 7-day average positivity rate last April 15 was 22.7 percent.

So, skyrocketing hospitalizations, huge positivity rate (albeit with low testing numbers) and yet, let’s open it up.

Wonderful.

  29 Comments      


Pritzker interview roundup

Tuesday, Mar 16, 2021 - Posted by Rich Miller

* Gov. JB Pritzker did several interviews with reporters yesterday. Subscribers have my report, but here are some highlights from the others. Mary Ann Ahern at NBC 5

Gov. J.B. Pritzker said while he anticipates opening up vaccine eligibility - particularly in the months ahead to meet President Joe Biden’s deadline of having all adults eligible by May 1 - the exact timing of Illinois’ expansion isn’t clear.

“No announcements yet about what 1C would look like, I just think that people should start to think very much about you know the fact that we’re going to open this up to everybody relatively sooner than I think people expected,” Pritzker said during the interview Monday. “Certainly by May 1 and we’ll do it sooner than that I believe in the state of Illinois.”

* CBS 2’s Dana Koslov focused on the IDES backlog

Kozlov: “We’re a year in. Why is this still happening?”

Pritzker: “Well, let me begin by just saying that when you’re in the most difficult moment of your life – when you’ve lost your employment and you need help – you ought to be able to get to it.”

And that is exactly why alarms sounded when Acting IDES Director Kristin Richards stated, at a hearing, that some callback times were getting worse. She said current response times were “upwards of four weeks.”

Pritzker disputes that, calling it inaccurate. But he did say: “We’ve gotten better at this, but it’s not good enough. There’s no doubt about it. It’s not good enough, and that’s why we continue to apply people, technology, dollars to fixing the system; making it easier.”

Fixing it would make the questions go away. Just sayin.

* Greg Hinz at Crain’s

After a full year of COVID-19 battles that has taken a toll on him and his state, Gov. J.B. Pritzker says he has no real second thoughts about the decisions he’s made to fight the pandemic.

“If I knew then what I know now, I probably would have made some changes,” such as implementing a statewide mask order earlier, Pritzker said in an interview late Monday, exactly one year after the state’s first COVID death. Of all government restrictions, “it’s clear masks have done the most” to slow the infection rate.

To date, Illinois has reported nearly 21,000 COVID-related fatalities and 1.2 million cases. That’s actually more on a per capita basis than in some states, notably Florida, which imposed far fewer restrictions for a far shorter time than Illinois, and whose experience has made some wonder if Pritzker made the right tradeoff.

Pritzker rejected that suggestion. Florida “is different,” he said, with a much different population mix than Illinois and a warmer climate which keeps people outside more often and away from indoor venues where the virus spreads more quickly.

The better comparison to make would be with New York and California, particularly New York City and Los Angeles. “Hospitals were over-run” in New York last spring and in LA this winter,” he noted. “That didn’t happen here.”

Just as an aside

“From March to early June, Republican-led states had lower Covid-19 incidence rates compared with Democratic-led states. On June 3, the association reversed, and Republican-led states had higher incidence,” the study by researchers at the Johns Hopkins Bloomberg School of Public Health and the Medical University of South Carolina showed.

“For death rates, Republican-led states had lower rates early in the pandemic, but higher rates from July 4 through mid-December,” the study found.

* Mike Flannery at Fox 32

The governor says a hoped-for summer re-opening of the tourism-hospitality business, Illinois’ second-largest employer, is not entirely up to politicians.

“And I think it’s very important for us to recognize that there are a lot of people who are still afraid. And I don’t blame them,” Pritzker said.

* Rachel Hinton at the Sun-Times

“Remember, a hurricane hit us effectively with this pandemic and what Donald Trump ignited was a heavy headwind in addition to the hurricane that was hitting us,” Pritzker said. “I had to just decide that this wasn’t about politics and that, even if he was trying to convince people not to wear masks … that I needed to do everything that I could to keep people safe. And that’s what I’ve done.”

The governor gave an emphatic “no” when asked if he was worried that his efforts during the pandemic may tank his potential bid for a second term, adding “I’m focused on doing what’s right for the people of the state of Illinois and not on the politics.” […]

Half the funds from the recently passed COVID-19 relief bill should be available by April and the state has to make sure they’re used “prudently,” Pritzker said.

“What’s important about it is we we’ve got to make sure that those dollars are used prudently, that we pay down debt that we incurred as a result of the coronavirus, that we pay down bills that were incurred during this pandemic and that we ignite job creation and economic growth with those dollars,” Pritzker said. “I think that’s the best and wisest use for us in this pandemic, and that’s what I’m here to encourage the Legislature to do.” […]

Pritzker is eligible for the vaccine in Phase 1B plus, but he said he’s waiting to get his dose to avoid jumping the line.

* Mark Maxwell at WCIA

While Pritzker stopped short of calling on Cuomo to resign, he said he supports a “thorough investigation,” believes the women accusing Cuomo of harassment and misconduct “should be listened to,” and suggested the Albany legislature may decide to remove him from office.

“A decision needs to get made in New York by the people of New York, by the people in the legislature in New York, whether or not Governor Cuomo should stay in office,” Pritzker said.

When asked if he plans to run for re-election in 2022, Pritzker said, “that’s not something I’m thinking about right now.”

* Marissa Nelson and Amanda Vinicky at WTTW

“I feel better today than I have this entire year,” Pritzker said Monday during an interview with “Chicago Tonight.” “As you see, our numbers have significantly declined, the numbers of people going into the hospital, getting sick, going on a ventilator in an ICU, and we’ve got more people vaccinated on a per capita basis than any other of the top 10 largest states in the country.”

On Monday, Illinois launched a COVID-19 vaccine hotline to help residents book appointments — a process many have found to be challenging.

“We have a decentralized public health system in the state of Illinois, and so 97 local public health departments,” Pritzker said. “They don’t answer to the state, they answer to their local county governments. That’s been one of the challenges.”

Illinois offered the same appointment-making software to every local public health department, but many chose not to use it, he said.

* Hannah Meisel at WUIS

Though COVID-19 has been all-encompassing this year, Pritzker has also dealt with issues not directly related to the pandemic — and much ink has been spilled over a string of perceived political losses. In November, voters overwhelmingly rejected his signature graduated income tax constitutional amendment, which he spent more than three years — and millions of his own dollars — campaigning on as both a gubernatorial candidate and as governor.

Pritzker recently backed Chicago Ald. Michelle Harris (8) to head the Democratic Party of Illinois after the departure of longtime House Speaker Mike Madigan from party chair last month, only to see U.S. Rep. Robin Kelly of Matteson ascend to the position with backing from U.S. Sen. Dick Durbin. The governor also failed to muscle through a significant revenue-related bill during lawmakers’ Lame Duck session in January.

In these losses — coupled with the tension that’s built up between the executive and legislative branches of government during the past year where Pritzker has mostly ruled via executive order — does the governor think he has any bridges to mend with fellow Democrats and voters?

“Look, I’ve not been focused on the politics what I’ve been focused on is really keeping people safe, keeping them alive,” Pritzker said. “If I was focused on politics, I would have made different decisions and more people would have died.”

A recent poll from 1892 Polling found voters were split 41% to 41% on public opinion of Pritzker, with 18% reporting no opinion. Pritzker on Monday dismissed that poll for its pollster’s history in Republican politics, including former Gov. Bruce Rauner’s 2014 campaign, and instead pivoted to programs his administration set up to help struggling Illinoisans.

“It’s been a difficult year for everybody, there’s no doubt about it,” Pritzker said. “What I’ve been focused on is lifting people up trying to get them the assistance that they need, whether it’s with the largest rental assistance program in the United States, the Business Interruption Grant [BIG] program, the childcare support program that we put in place — the largest in the United States and uses a model now nationally.”

He did an interview with the Tribune, I’m told, but it’s not up yet.

…Adding… Oops. Missed one. Dave McKinney and Tony Arnold at WBEZ

Another GOP criticism directed at Pritzker involves his administration’s inability to safeguard residents of Illinois’ state-run veterans’ homes from COVID-19. Since the pandemic began, nearly 80 COVID-19 deaths have been reported at state-run veterans’ homes, with 36 of those fatalities reported at the LaSalle veterans’ home alone.

“It does get to this level of (a) …question of competence,” said Senate Minority Leader Dan McConchie, R-Hawthorn Woods, one of Pritzker’s harshest critics in the General Assembly. “Just because you have a pandemic going on, just because you have a long-term crisis, doesn’t mean the governor should get a pass in regards to this level of mismanagement on these and other things.” […]

But Pritzker shrugged off any negativity from the newly seated top Senate Republican.

“It’s clear there’s a lot of politics involved here. The Senate minority leader, Dan McConchie, [has] consistently been wrong in his criticism. Remember that it’s his caucus and members of his caucus that have been frequently the ones who are telling people ‘don’t worry about wearing masks, don’t worry about mitigations,’ that in fact have seen deaths and people getting sick in their areas,” the governor said.

“There’s been very little leadership on the part of Republicans, in general, and specifically here in Illinois,” Pritzker said.

  24 Comments      


*** LIVE COVERAGE ***

Tuesday, Mar 16, 2021 - Posted by Rich Miller

* Follow along with ScribbleLive


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« NEWER POSTS PREVIOUS POSTS »
* Selected react to budget reconciliation bill passage (Updated x2)
* Reader comments closed for Independence Day
* SUBSCRIBERS ONLY - Some fiscal news
* Isabel’s afternoon roundup (Updated)
* RETAIL: Strengthening Communities Across Illinois
* Groups warn about plan that doesn't appear to be in the works
* SB 328: Separating Lies From Truth
* Campaign news: Big Raja money; Benton over-shares; Rashid's large cash pile; Jeffries to speak at IDCCA brunch
* Rep. Hoan Huynh jumps into packed race for Schakowsky’s seat (Updated)
* Roundup: Pritzker taps Christian Mitchell for LG
* Open thread
* Isabel’s morning briefing
* SUBSCRIBERS ONLY - Supplement to today’s edition (Updated)
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Selected press releases (Live updates)
* Live coverage
* Trump admin freezes $240 million in grants for Illinois K-12 schools
* Yesterday's stories

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