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* Midwest Bond Buyer correspondent…
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
— yvette.shields@arizent.com (@Yvette_BB) September 15, 2021
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.
— yvette.shields@arizent.com (@Yvette_BB) September 15, 2021
posted by Rich Miller
Thursday, Sep 16, 21 @ 9:27 am
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Seriously, someone do a welfare check on Greg Bishop.
Comment by Flyin' Elvis'-Utah Chapter Thursday, Sep 16, 21 @ 9:33 am
Illinois bonds are a good investment.
There’s the phony rhetoric and there’s the monetary reality.
Good news for the state here “… as the spread to what a top rated borrower pays is at best levels in very very long time.”
Boy, IPI is having a tough 2021
Comment by Oswego Willy Thursday, Sep 16, 21 @ 9:41 am
IPI: “Illinois only *matching* previous marks, a decline will follow, maybe”
Wirepoints: “Yeah, sure, now do it a third time, or whatever, we don’t like Illinois”
Comment by Oswego Willy Thursday, Sep 16, 21 @ 9:43 am
It sounds like gibberish, but it’s good gibberish.
Comment by Bruce( no not him) Thursday, Sep 16, 21 @ 9:44 am
Glad you asked for a translated version (banned punctuation).
Comment by Occasional Quipper Thursday, Sep 16, 21 @ 9:51 am
In times like this Kristen McQueary is happy the market deemed her job irrelevant so she doesn’t have to discuss positive fiscal news regarding the State of Illinois.
Comment by Almost the Weekend Thursday, Sep 16, 21 @ 9:51 am
I only understood that this issue is rated AAA, that is good from my limited understanding of finance.
Comment by AnonymousFool Thursday, Sep 16, 21 @ 9:52 am
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.
Comment by Nagidam Thursday, Sep 16, 21 @ 10:15 am
“Illinois bonds are a good investment.”
And the truth is, they always have been.
– MrJM
Comment by MisterJayEm Thursday, Sep 16, 21 @ 10:19 am
===And the truth is, they always have been.===
It’s a racket predicated on ignoring the law and constitution to give an impression not congruent to the actual.
- Wordslinger - had it right, per usual.
Comment by Oswego Willy Thursday, Sep 16, 21 @ 10:21 am
I’d be curious what’s the longest time interval before Bill ILL bonds sold out. Five minutes?
Comment by Jocko Thursday, Sep 16, 21 @ 10:28 am
Jocko,
Muni bonds sales don’t work that way. This was the type of sale known as a negotiated sale so there would be an order period for hour or 2, then a repricing of the bonds based on demand received.
Comment by Former Bartender Thursday, Sep 16, 21 @ 10:38 am
Progress has been remarkable? Amazing what Federal dollars can do to paper over structural deficits
Illinois still owes 4.2 billion to the unemployment insurance fund. An issue that has been unaddressed by the Governor and the supermajority legislatures
Comment by Lucky Pierre Thursday, Sep 16, 21 @ 11:07 am
== translate ==
😊😀😝
Reading the 1st text read like bad news. 2nd totally diff.
Comment by sal-says Thursday, Sep 16, 21 @ 11:08 am
After years of hearing how terrible Illinois was for bonds, business etc. So nice to hear yet another positive story. Whether you like the current leadership or not, hard to argue with results.
Comment by BTO2 Thursday, Sep 16, 21 @ 11:23 am
Rich: “I’m proud my readers were here today to read her posting. Not only was it a display of authentic finance frontier gibberish….”
Comment by thisjustinagain Thursday, Sep 16, 21 @ 11:25 am
===Whether you like the current leadership or not===
Bond ratings that ignores the law, and specifically the constitution, it makes no difference the “leadership”.
It’s great news, but what exactly makes bad news happen if one looks at the constitution?
Comment by Oswego Willy Thursday, Sep 16, 21 @ 11:29 am
Is there a way for the state to borrow at the low rate and use that money to pay off some of the higher interest debt? If they could, that should make the state’s future financial outlook even better.
Comment by DuPage Thursday, Sep 16, 21 @ 11:54 am
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.
Comment by Tommydanger Thursday, Sep 16, 21 @ 11:55 am
== 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.
Comment by Sling Thursday, Sep 16, 21 @ 12:25 pm
=== 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.
Comment by Juvenal Thursday, Sep 16, 21 @ 12:28 pm
===Amazing what Federal dollars can do to paper over structural deficits===
If you were gone 3 tries, you couldn’t articulate where the federal dollars went, or why they were important AND that Illinois must pay the monies back.
Your feeble attempt to sound thoughtful to policy never gets past your dishonesty in looking at it.
Comment by Oswego Willy Thursday, Sep 16, 21 @ 12:30 pm
Todd Maisch is the cheerleader of anything that can drag Illinois into a negative light.
Maisch leads the Chamber of Discontent.
Comment by Oswego Willy Thursday, Sep 16, 21 @ 12:32 pm
If I was gone 3 tries???
Really, did you miss Illinois trying to use the Federal Money to pay back the money to the unemployment insurance fund.
Smoke and mirrors budgeting continues no matter how much you try to ignore
Comment by Lucky Pierre Thursday, Sep 16, 21 @ 12:59 pm
===trying to use the Federal Money to pay back the money to the unemployment insurance fund===
So, the massive unemployment last year had nothing to do with the pandemic?
You might need a nap.
Comment by Rich Miller Thursday, Sep 16, 21 @ 1:09 pm
Still miss wordslinger on posts like these.
Comment by ChrisB Thursday, Sep 16, 21 @ 1:14 pm
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.
Comment by Nagidam Thursday, Sep 16, 21 @ 3:09 pm
Thre can never be good fiscal news as long as our government officials ignore the pension debt AND the fact that retiree and employee health insurance contributions must increase.
Comment by Old Lobster Thursday, Sep 16, 21 @ 4:27 pm
== There can never be good fiscal news as long as our government officials ignore the pension debt==
How are government official ignoring then pension debt?
Comment by Da Big Bad Wolf Thursday, Sep 16, 21 @ 5:04 pm