Illinois will pay as much as Mexico for bonds to keep themselves afloat. with a fifth of their debt being sold overseas. Consumer confidence isn’t that optimistic for the leftist run state.
The state sold one-fifth of the federally subsidized securities abroad the next month, tapping investors who are the fastest-growing source of borrowed cash for U.S. municipalities. Illinois, with the lowest credit rating of any state from Moody’s Investors Service, dangled yields higher than Mexico, which defaulted on debt in 1982, and Portugal, which costs more to insure against missed payments.
Californias debt isn’t so cheap either.
A taxable California bond maturing in 2040 traded yesterday to yield 6.9 percent. That was 1.72 percentage points more than similar bonds from Mexico, according to data compiled by Bloomberg. Portugal, whose long-term credit rating was cut in April by Standard & Poor’s, yielded 6.2 percent yesterday on bonds due in 2037, 69 points less than California. A basis point is 0.01 percentage point.
There might be hope for Illinois financial troubles, John Richardson notes that The latest Rasmussen polls shows State Senator Bill Brady leading his Democratic opponent Gov Pat Quinn 48% to 36%. Illinois ??