Illinois Tobacco Payment Bonds Offer ‘Sweet Yield’: Muni Credit
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Illinois began taking orders from individuals on $1.46 billion in municipal bonds backed by tobacco settlement payments to help meet $2 billion in outstanding bills.
States and municipalities are poised to borrow about $13.3 billion this week, the second-highest weekly total this year, according to data compiled by Bloomberg. The so-called Railsplitter Tobacco bonds are the week’s largest issue and the state’s biggest tax-exempt borrowing since a $1.5 billion refinancing deal in February.