Rich Miller Shills for More Debt, While Illinois Bonds Approach Junk Status
PR from Illinois’ leading Innumerati, Rich Miller
“Strong interest in Illinois bonds shows muni hysteria is way overblown”
Some sobering numbers from the Wall Street Journal
Illinois tapped the taxable-debt market, where yields tend to be higher than in the tax-exempt municipal-bond market, because selling bonds to prop up sagging pensions typically doesn’t qualify for tax-exempt status under the U.S. tax code, say bankers and state officials.
The longest maturity in the Illinois bond deal, due in 2019, was sold at a yield of 5.877%. In comparison, a $400 million “junk” bond issued by auto-parts maker Dana Holding Corp. and maturing in 2019 had a yield of 6.24%.
A recently issued ConocoPhillips corporate bond maturing in eight years carried a yield of 3.86%. The oil company and Illinois are both rated A1 by Moody’s Investors Service.
Miller is a fool.
He also thinks that the Illinois legislature can tax its way to solvency and prosperity.
Leave your response!