The state of Illinois is hoping investors will snap up $800 million worth of bonds next week. The investment world has not looked kindly on Illinois bonds in recent years as the state has struggled with a mountain of debt.
Illinois officials say this week’s bond sale went better than expected, but traders say the state is still paying a higher interest rate than any other state in the country.Illinois bonds are rated the worst in the country by Moody’s – reflecting the state’s inability to pay
The State of Illinois will find out this week how willing investors are to buy the state’s bonds, which are rated the lowest in the country by Moody’s. The state plans to sell $3.7 billion worth of bonds as early as tomorrow to make this year’s pension payment.
Illinois Governor Pat Quinn says an inquiry by the Securities and Exchange Commission won’t interfere with the state’s plan to sell bonds next month. Kelly Kraft, a spokeswoman for the governor, says the SEC began the inquiry in September.
A possible income-tax hike in Illinois may have some taxpayers grumbling, but bond investors say it’s a good step. California is in terrible financial shape, but the bond-rating agency Moody’s says we are even worse. It rates Illinois bonds the lowest in the country.
The owners of the Chicago Cubs are trying to gain public support for their plan to get government-issued bonds to renovate Wrigley Field.Cubs' Chairman Tom Ricketts addressed the media Tuesday morning in a room full of business and labor leaders.