Editorial: Bond vigilantes are coming for the city of Chicago

Chicago’s debt is looking less and less attractive - The Editorial Board

With recent attention focused on the budget drama in Chicago, you’re forgiven if you missed what could end up being a yet-bigger story with perilous long-term consequences for this city.

• The city floated $454 million in bonds on Nov. 19, and $75 million of those went unsold.

More precisely, Goldman Sachs, which underwrote the deal, was left holding the $75 million after the bank couldn’t find buyers for that amount, according to Bloomberg News. 

And, making matters worse, the bonds that were sold moved only after Goldman boosted interest rates beyond what the city forecast in order to entice the buyers...
Mayor Brandon Johnson’s administration surely isn’t helping to reassure investors by proposing the City Council approve a record-setting $3.8 billion bond authorization...