Thu, Jul. 16, 3:39 PM
- "That's stunningly high," says Van Eck chief municipal strategist Jim Colby, after Chicago priced $1.1B in both taxable and tax-free bonds. The taxable issue maturing in 2042 priced to yield 7.98%, and the tax-free paper maturing in 2039 priced to yield 5.69% - a taxable equivalent yield of 9% (for the highest bracket).
- The debt has been rated BBB+ by Fitch.
- "Chicago is not Detroit," says Colby, who calls this new debt "far and away" the best value of similar credit quality in municipals. He notes the 30-day yield of his Market Vectors High Yield Municipal Index ETF (NYSEARCA:HYD) is just 4.61%.
- ETFs: MUB, IIM, HYD, NUV, PML, NIO, MAV, PZA, LEO, MHI, VMO, NEA, PMF, NMZ, PMX, BFK, EVN, BLE, DSM, KTF, NQU, NXP, VGM, PMM, AFB, VKI, MVF, HYMB, EIM, NQM, NPM, TFI, OIA, BKN, MUA, MEN, PMO, MVT, IQI, MYD, VKQ, NMO, MYI, XMPT, NPI, CMU, MMU, MUE, CXE, EXD, NAD, NMA, BBK, BYM, NPP, NQS, NEV, DMF, MFL, NZF, NVG, NQI, KSM, NPT, MHD, MFM, MUH, NXZ, MQY, SHYD, MFT, MZF, PRB, EIV, BBF, MHF, BAF, EOT, MUS, NUW, NXR, DTF, NPF, MNP, BSD, NXQ, MQT, MYF, DMB, NIM, NMI, CXH, BIE, FMN, PVI, VFL, RVNU, FMB
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