Chicago Schools Come Back to Muni Market in High Yield Rally

Chicago’s junk-rated public school district returned to the municipal bond market after a two-year hiatus, with its sale coming as the high-yield market for state and local debt turns positive.

The board of education sold $650 million in bonds Thursday for capital projects, ranging from roof repairs to technology upgrades. The deal is the first by the district, the biggest US issuer of junk muni bonds, since October 2023 and comes on the heels of the board’s passage of a controversial budget.