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Bondholders fret as alchemy turns Chicago junk into gold

NOVEMBER 13, 2017 | by Martin Braun | BLOOMBERG

By Martin Braun, includes “… Yet next month, the nation’s third-largest city -- whose bonds were downgraded to junk by Moody’s Investors Service two years ago -- will start selling as much as $3 billion of debt that another rating company considers as safe as U.S. Treasuries. That’s because Chicago is selling off its right to receive sales-tax revenue from Illinois to a separate public corporation, which will issue new bonds backed by those funds, a structure called securitization.” 

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