I think maybe you want to stay away from Illinois and Chicago bonds.
The State of Illinois and the City of Chicago have big problems. Their pension obligation costs are k*****g them. These pressures have built over many years. The Democrat politicians running Illinois and Chicago have been unable to make the painful structural changes needed. The Fed's low interest rates have investors scrambling for yield. Chicago's bonds in particular are attractive. For now Illinois and Chicago can paper over their troubles, but sooner or later the end will come.
However, I think that sooner rather than later investors will get burned if they keep buying this junk. This article is 10 months old, but it is still relevant.
https://www.reuters.com/article/us-illinois-bonds/sellers-market-seen-aiding-illinois-and-chicago-bond-issues-idUSKCN1R60ZA
son of witless wrote:
The State of Illinois and the City of Chicago have big problems. Their pension obligation costs are k*****g them. These pressures have built over many years. The Democrat politicians running Illinois and Chicago have been unable to make the painful structural changes needed. The Fed's low interest rates have investors scrambling for yield. Chicago's bonds in particular are attractive. For now Illinois and Chicago can paper over their troubles, but sooner or later the end will come.
However, I think that sooner rather than later investors will get burned if they keep buying this junk. This article is 10 months old, but it is still relevant.
https://www.reuters.com/article/us-illinois-bonds/sellers-market-seen-aiding-illinois-and-chicago-bond-issues-idUSKCN1R60ZAThe State of Illinois and the City of Chicago have... (
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There are a zillion reasons to stay away from Chicago.
Liberty Tree wrote:
There are a zillion reasons to stay away from Chicago.
No one in their right mind would want to have anything to do with Chicago.
Liberty Tree wrote:
There are a zillion reasons to stay away from Chicago.
Puerto Rico defaulted on it's bonds in 2016. Bond holders took pretty big hair cuts on those bonds. I think you have to be really greedy and stupid to be buying Chicago and Illinois paper.
Democrats counted on the stupidity of Taxpayers when they passed Obama Care. They are counting stupidity and greed here.
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