Illinois floating USD 750m of GOs next month for capital plan
Summary: JR discusses high yield muni supply/demand dynamics.
The State of Illinois will sell USD 750m of general obligation (GO) bonds in November as the first financing tranche for the state’s USD 45bn new capital plan, Rebuild Illinois, said Carol Knowles, deputy director of communications at the Governor’s Office of Management and Budget. As the lowest-rated state in the union, Illinois will likely enjoy strong reception to its bonds, said JR Rieger, author of the bond newsletter, the Rieger Report. “The demand for higher-yielding bonds is so out of kilter that Illinois will be successful with its sale,” Rieger said. “Given all the other states, Illinois is looking like one of the cheaper ones, and the demand for anything with incremental yield is huge at this stage in the market.”
Date of publication: October 11, 2019