Seller's market seen aiding Illinois and Chicago bond issues

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Financial uncertainties swirling around Illinois and Chicago may not deter bond ...

CHICAGO - Financial uncertainties swirling around Illinois and Chicago may not deter bond buyers when the two fiscally shaky governments sell more than $1.1 billion of debt this week.

“We believe that if going to pick a time to come to market, now is a pretty good time to be coming,” said Dan Heckman, national investment consultant at U.S. Bank. “My gut tells me these deals are going to get done and done at a level that is pretty attractive for Illinois and the city of Chicago and over a longer period of time will likely prove unattractive for investors,” said Nicholos Venditti, a portfolio manager at Thornburg Investment Management.

“That is a significant risk,” Venditti said, adding that the situation is even “scarier” in Chicago, which already has a junk rating with Moody’s Investors Service, along with ratings of BBB-plus with S&P Global Ratings and BBB-minus with Fitch Ratings.

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