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Chicago’s Improved Finances Reflected in Bond Investor Sentiment

  • City’s bonds among top one-third in US since March, data show
  • Mayor plans to pay $242 million to four underfunded pensions
The Chicago skyline.

The Chicago skyline.

Photographer: John Zich/Bloomberg

Investors are more bullish on Chicago now than they have been in years as the city’s fiscal outlook brightens, causing their outstanding bonds to perform better than those of other big cities. 

The third-largest US city has long struggled with a poor credit rating, dragged down mostly by its underfunded pensions. But the city’s financial picture has begun to turn around, with stronger-than-expected revenue and progress on payments to retiree benefits.