Wirepoints reports Illinois Debt Trading at Junk Levels.

A new borrowing by Illinois shows lenders are already treating the state like it’s junk-rated.

Last week, Illinois raised $800 million from the bond market with repayment dates through 2045. The borrowed money, meant for summer construction projects and a pension buyout program, costs Illinois as much as 5.85 percent yearly. No other state in the country pays such high interest rates.

Over the life of the $800 million bond issue, Illinois will end up paying $450 million more in interest costs than if it were a AAA-rated state. 

Illinois Borrowing Penalty

Illinois Borrowing Penalty

Illinois’ True Retirement Cost is 58% of the Budget

On May 4, I noted Illinois’ True Retirement Cost is 58% of the Budget


Illinois has the worst funded pension plans in the nation. That was true before Covid-19 as well.

New Jersey, Hawaii, Connecticut, and Kentucky are next in line. But no other state comes close to having that much of their budgets swallowed by retirement costs.

On April 17, I commented Illinois is Insolvent: State Requests a Pension Bailout From Congress

No Bailout

Illinois does not deserve a bailout. Its pension woes are of it own making and have nothing to do with the coronavirus.

Illinois debt trades like junk, because it is junk.


Illinois State Workers, Highest Paid in Nation, Demand 11.5 to 29% Hikes

Illinois state workers, are the highest paid in the nation. AFSCME workers already get platinum healthcare benefits that would make nearly everyone in the country green with envy.

Moody’s Warns Illinois Governor: New Taxes Might Make Illinois Residents Flee

Bond rating agencies almost always like tax hikes. But Moody's has a special warning for Illinois.

Illinois Pension Benefits, Other Promises, and Insolvency

Let's take a momentary reprieve from Italian insolvency to discuss the sorry state of affairs in Illinois.

Illinois Budget Out of Balance Again: Solution More Junk Bonds

An Illinois "Road Show" touts more junk bonds as a solution to a perpetual budget crisis. What a bunch of garbage.

Illinois Governor Seeks to Sell State Buildings and other Assets to Pay Pensions

Governor Prtizker released details of his plan to save Illinois. He made three of three of the worst possible choices.

Illinois Ponders Pension Moonshot Gamble: $107 Billion Bond Sale

What better time than now to borrow $107 billion to invest in stocks? That's what Illinois is actually considering.