Illinois ‘Fiscal Malpractice’ Widens Yield in $900 Million Issue
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Illinois, whose comptroller said the state is in the worst financial position in its history, may face a risk premium that is about 11 percent above what it paid last month when it sells $900 million of Build America Bonds today.
The state, selling the federally subsidized taxable debt to pay for transportation and various capital projects, borrowed $8.7 billion in the fiscal year ended June 30, the most since it sold $10 billion to fund its pension plan contribution in fiscal 2003, according to data compiled by Bloomberg.