Look at All That Money!
Remember, Rahm is pushing to raise taxes by nearly $600 million or by golly, he's going to lay off 4,000 cops and 2,500 firefighters!
- Even as Chicago confronts a fiscal crisis, investors are looking beyond its turbulent finances with anticipation toward the city’s biggest bond deal ever.
Chicago sold about $2 billion of securities for O’Hare International Airport, backed by revenue from the nation’s busiest airport and sheltered from the mounting pension obligations squeezing the third-most populous U.S. city. Fund managers at Wells Fargo Asset Management and Conning say any yield premium resulting from the city’s tainted reputation is likely a buying opportunity given the airport’s rising traffic and hub status.
“Just looking at the nuts and bolts of the deal, it’s been pretty impressive what’s going on there,” said Paul Mansour, head of municipal research at Hartford, Connecticut-based Conning, which holds O’Hare debt among its $11 billion of tax-exempt securities and is reviewing the deal. “There will be a certain amount of firms, individuals who say no Chicago under any circumstance. That will add some value for those that look through to the underlying credit.”
Bloomberg had this story. We didn't see it in the local rags, nor the television stations. Not a dime going to pensions, even though $2 billion would pay the obligations three times over. But hey, Chicago is broke and you chumps better come up with $588 million....or else!