Illinois is returning to the $4 trillion muni market with a scaled-down $1.63 billion offering as its borrowing penalty reaches the highest since January 2021.
The elevated borrowing costs will erode the benefit from recent credit-rating upgrades as its tax revenue recovers from the pandemic. Already, the state has been forced to downgrade its issuance ambitions by as much as $180 million, according to a preliminary pricing wire viewed by Bloomberg. Yields on benchmark state and local debt have continued to climb.
Why It’s Noteworthy
Illinois had planned to sell almost $1.82 billion of bonds, according to initial bond documents. ...