Wisconsin Bonds Beat Illinois Debt Suggesting State Not ‘Broke’

Wisconsin Governor Scott Walker insisted his state is “broke” as he sought to limit collective bargaining for most government workers, while investors in the $2.93 trillion municipal-bond market have shown faith in the government’s ability to work out its fiscal difficulties.

In the past two months, the cost of insuring $10 million of five-year Wisconsin bonds against default averaged $113,400, compared with a national average of $131,450 for all states so protected. Walker, 43, signed the union curbs into law March 11.