Chicago is trying to sell $1.2 billion of bonds. Who wants them?

I know all about the cash strapped windy city but why would they need to sell bonds when its now the top financial hub for hedge funds ?

Smells like more financial corruption...nothing new in Chicago.

The windy city should thank Amazon for their opting out of New York that helped Ken Griffin decision in not moving Citadel from Chicago to New York after he bought a $238 million dollar penthouse in New York earlier this year.

wrbtrader
 
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minority underwriters? insanity... these guys try to be political correct on their way to the grave..

remember a few years Puerto Rico also offered a bunch of bonds with attractive yields?
 
wrbtrader said:
I know all about the cash strapped windy city but why would they need to sell bonds when its now the top financial hub for hedge funds ?

Smells like more financial corruption...nothing new in Chicago.

The windy city should thank Amazon for their opting out of New York that helped Ken Griffin decision in not moving Citadel from Chicago to New York after he bought a $238 million dollar penthouse in New York earlier this year.

wrbtrader
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Every major city sells bonds, and a bunch of minor ones as well. And why not take advantage of low interest rates, especially if previous bonds are callable?
 
Sig said:
Every major city sells bonds, and a bunch of minor ones as well. And why not take advantage of low interest rates, especially if previous bonds are callable?
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I am aware that many cities sell bonds but others do not when their city is financially stressed and Moody has downgraded it to junk status.

Chicago is stressed and was downgraded to junk status several years ago. Regardless, it will mean "higher" interest rates for the buyers. Yet, I do understand that Chicago has a financial growth since the financial crisis of 2008 - 2010 and has become more attractive to hedge funds to the point its now the top hub for hedge funds.

wrbtrader
 
wrbtrader said:
I am aware that many cities sell bonds but others do not when their city is financially stressed and Moody has downgraded it to junk status.

Chicago is stressed and was downgraded to junk status several years ago. Regardless, it will mean "higher" interest rates for the buyers. Yet, I do understand that Chicago has a financial growth since the financial crisis of 2008 - 2010 and has become more attractive to hedge funds to the point its now the top hub for hedge funds.

wrbtrader
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Actually you're more likely to resort to debt the more stressed you are. That said, Chicago has climbed to just under investment grade and is on the upswing, but they've got a ways to go since they started in a big hole.

I'm not sure hedge funds really help your tax base a lot. IL does have the "replacement tax" that goes to counties and cities, but it is based on revenue which of course a hedge fund has very little of thanks to the carried interest loophole. The rest of the state income tax mostly goes to the state. The City of Chicago has all kinds of taxes, but none of them really impact the assets under management at all and only tangentially hit the hedge fund employees and then mostly only if they choose to live in Chicago.
 
wrbtrader said:
I am aware that many cities sell bonds but others do not when their city is financially stressed and Moody has downgraded it to junk status.

Chicago is stressed and was downgraded to junk status several years ago. Regardless, it will mean "higher" interest rates for the buyers. Yet, I do understand that Chicago has a financial growth since the financial crisis of 2008 - 2010 and has become more attractive to hedge funds to the point its now the top hub for hedge funds.

wrbtrader
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Nothing wrong, they are more credit worthy than subprime mortgage back in early 2000s.
 
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