Chicago, Illinois Bond Deals Cash In on Bond Market Rally

Illinois is leveraging the global debt rally by selling bonds, maintaining a BBB- rating with a stable outlook. The focus is on budget analysis, highlighting risks from a progressive income tax and asset transfer strategy. Illinois' pension obligation bonds, though small compared to its liabilities, carry risks. The market is also discussing other post employment benefit bonds, which share similar risks depending on funding discipline.

What is the current credit rating of Illinois as discussed in the video?

• Single B

• Triple B minus

• Double A

• Triple A

What financial strategies are considered risky for Illinois according to the video?

• Progressive income tax and asset transfer strategy

• Reducing public spending

• Increasing sales tax

• Investing in technology

How many times has Illinois issued pension obligation bonds before?

• Once

• Twice

• Three times

• Four times

What is the size of the pension obligation bonds compared to Illinois' unfunded liabilities?

• Small

• Very large

• Equal

• Moderate

What is crucial for managing the risks associated with other post-employment benefit bonds?

• High interest rates

• Government subsidies

• Short-term investments

• Funding discipline