Updated over 9 years ago on . Most recent reply
Chicago Public Schools Fighting to Avoid Insolvency or Bankruptcy
Will a school insolvency or bankruptcy hurt or help real estate prices in Chicago? How's real estate doing in Puerto Rico? We know it was in Detroit before the bankruptcy? Is DPS still a drag on Detroit's Real Estate values?
Crain's: Chicago pays premium to lure investors to delayed school bonds
http://www.chicagobusiness.com/article/20160203/NE...
“They're in very severe financial straits,” said Dan Heckman, a senior fixed-income strategist in Kansas City at U.S. Bank Wealth Management, which oversees $128 billion. “This is just an effort to hopefully buy some time so they can continue to get their house in order but what a steep price they're paying.”
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Chicago's schools are running out of cash after drawing down reserves and shortchanging pensions for years, which caused its annual payment to soar. The district has relied on borrowing to help cover budget shortfalls, making it crucial to maintain access to the municipal market. On Jan. 29, Moody's Investors Service cut the board deeper into junk, citing an “increasingly precarious liquidity position and acute need for market access to support ongoing operations.”