Thursday, June 17, 2010

Debt-Shocky Illinois

Illinois Debt Default Insurance Climbs to Record, CMA Data Show
The cost of a five-year credit-default swap to insure Illinois obligations rose 6 basis points to 308.61 basis points today, or $308,610 to insure $10 million of debt, at 1:10 p.m. in New York, according to CMA DataVision. The gain makes insuring bonds from the fifth-most populous state the most costly among municipal issuers and puts it 66 basis points above Spain. A basis point is 0.01 percentage point.
We need reform STAT.

More. Political implications. Michael Barone: Voters in Big States Prefer Skinflint Candidates.

Related: Those Piggy Pensioned Illinois Public School "Servants"

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