Actuarial Outpost
 
Go Back   Actuarial Outpost > Actuarial Discussion Forum > Finance - Investments
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions


Upload your resume securely at https://www.dwsimpson.com
to be contacted when our jobs meet your skills and objectives.


Finance - Investments Sub-forum: Non-Actuarial Personal Finance/Investing

Reply
 
Thread Tools Search this Thread Display Modes
  #51  
Old 01-20-2016, 07:48 AM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 85,067
Blog Entries: 6
Default

CHICAGO PUBLIC SCHOOLS

http://chicagotonight.wttw.com/2016/...fjDXKs.twitter

Quote:
"Chicago Tonight” has learned that Gov. Bruce Rauner and top Republican leaders are planning to introduce legislation aimed at an emergency financial takeover of the city of Chicago and Chicago Public Schools. This comes in light of an imminent $500 million shortfall within the Chicago Public Schools system.

The Republican leaders are set to announce the legislation tomorrow, but Paris Schutz has the exclusive information tonight.

Sources tell “Chicago Tonight” that the governor and his top two legislative leaders – Senate minority leader Christine Radogno and House minority leader Jim Durkin will file a package of legislation Wednesday that would allow for an emergency financial oversight board appointed by the state to take over the financially strapped school district. Other legislation would allow for emergency financial oversight of the credit-beleaguered city of Chicago.

Legislation would also allow for CPS and the city of Chicago to declare bankruptcy – something by law both cannot currently do.

We’re also told that the legislation would call for an elected Chicago Public Schools board once the financial situation is remediated. This, in light of the fact that CPS has set now as a deadline to receive $500 million in relief from the state or else lay off thousands of employees, including teachers.

__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #52  
Old 01-20-2016, 10:39 AM
Beach Bum Beach Bum is offline
Member
CAS AAA
 
Join Date: Dec 2005
Location: Currently away from an Ocean
Favorite beer: Alpha King
Posts: 1,957
Default

Thanks for the continued source of info. I'm really hoping one of these days to wake up and actually have a material change/improvement to Chicago or state Gov't. Seems it's more of the same like when Quinn was in office.

Hopefully this move by Rauner starts a real domino effect for change. I'm sure it won't be pretty for many and for some time, but it's what the city needs.

My belief the past few years was that the 6 year bull run was helping pensions stay afloat, even if they remained as unfunded as they were, and one driver for change would be if the market came crashing down again by say 20% or more. We're in that midst now, so maybe this actually forces change.

Though not sure how large swings in the short-medium term impact pension valuations.
Reply With Quote
  #53  
Old 01-20-2016, 11:57 AM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 85,067
Blog Entries: 6
Default

CHICAGO PUBLIC SCHOOLS

http://www.bloomberg.com/news/articl...fore-borrowing

Quote:
Chicago Schools' Wrecked Finances on Display Before Deal

Board of Education plans $875 million of genearal obligations
Standard & Poor's cuts ratings, keeps bonds under review

Chicago schools are borrowing to pay mounting debt bills and fund capital projects as the district’s liquidity deteriorates and its credit rating tumbles.
The Chicago Board of Education will sell $875 million of bonds on Jan. 27, according to Bloomberg data from J.P. Morgan, an underwriter on the deal. The deal is made up of $796 million of tax-exempt securities and $79 million of taxable debt, according to bond documents. The proceeds will cover capital projects, convert variable rate debt to fixed, fund swap termination payments and pay debt-service bills, bond documents show.

http://www.reuters.com/article/chica...-idUSWNAB09OKY

Quote:
Jan 15 Standard & Poor's on Friday dropped the credit rating for the financially struggling Chicago Board of Education deeper into "junk" ahead of the school district's $875 million bond sale slated for later this month.

S&P cut the rating two notches to B-plus, while warning it could fall even further if the nation's third-largest school district fails to beef up cash flow to cover costs. (Reporting By Karen Pierog; Editing by Chris Reese)

__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #54  
Old 01-20-2016, 11:59 AM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 85,067
Blog Entries: 6
Default

CHICAGO PENSIONS

http://www.wirepoints.com/new-study-...-major-cities/

Quote:
New Study: Chicago has worst unfunded pension liability as a percentage of revenue among major cities – WP Original

A new study by the Center for State and Local Government Excellence looks at city unfunded pension liabilities under new governmental accounting standards. Some cities, unlike Chicago, participate in state-wide pension “cost-sharing” plans. The new standards require each city to include its shared liability in such plans, which increases their reported liability. This new study reflects those changes and measures unfunded liability as a percentage of each city’s revenue.



Despite those negative adjustments for other cities, Chicago is worst of 173 cities measured. Its unfunded pension liabilities are 359% of its revenues The 173-city average is 86%. Below, from the study, are the 20 worst of the 173 cities.




study here:
http://slge.org/wp-content/uploads/2...ties-Brief.pdf
__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #55  
Old 01-20-2016, 12:00 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 85,067
Blog Entries: 6
Default

more on the state legislation re: Chicago, CPS

http://chicago.suntimes.com/news/7/7...ps-legislation

Quote:
Republican legislative leaders are planning to propose a bill Wednesday that would allow a state-appointed board to take over the financially troubled Chicago Public School system and pave the way for it to declare bankruptcy, sources told the Chicago Sun-Times.

It’s a solution championed by Gov. Bruce Rauner — and rejected out of hand by Mayor Rahm Emanuel.

“The mayor is 100 percent opposed to Gov. Rauner’s ‘plan’ to drive CPS bankrupt,” mayoral spokeswoman Kelley Quinn said Tuesday night.

Illinois Senate Republican Leader Christine Radogno and Illinois House Minority Leader Jim Durkin are planning to hold a news conference Wednesday morning to introduce legislation pertaining to the fiscal crisis in Chicago and CPS, according to Radogno’s office.

The GOP Senate leader’s aides said no further explanation would come until the news conference.

But sources say the legislation will allow an emergency oversight board appointed by the state to take over CPS. It would also allow CPS to declare bankruptcy.

Emanuel is trying to fend off another teachers strike. The mayor last year signed off on a school budget that assumes $480 million in pension help from Springfield.

__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #56  
Old 01-20-2016, 12:25 PM
Beach Bum Beach Bum is offline
Member
CAS AAA
 
Join Date: Dec 2005
Location: Currently away from an Ocean
Favorite beer: Alpha King
Posts: 1,957
Default

Thanks Blagojevich
Reply With Quote
  #57  
Old 01-20-2016, 06:02 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 85,067
Blog Entries: 6
Default

CHICAGO PUBLIC SCHOOLS

http://www.reuters.com/article/chica...-idUSL2N1532RO

Quote:
Jan 19 The Chicago Board of Education's credit rating sank deeper into "junk" on Tuesday with a Fitch Ratings downgrade to B-plus with a negative outlook from a previous rating of BB-plus.

"The downgrade reflects the limited progress Chicago Public Schools (CPS) has made in addressing a structural budget gap approximating 20 percent of spending for the current fiscal year," the credit rating agency said in a statement

Fitch's action followed a similar move on Friday by Standard & Poor's, which cut the rating for the financially struggling district two notches to B-plus.

In its rating report, Fitch said CPS faces a "relatively inflexible expenditure profile," an extremely limited independent ability to raise revenue and will likely deplete its reserves by the end of fiscal 2017.

The nation's third-largest public school system plans to sell $875 million of general obligation bonds next week. A recently posted online investor presentation for the bond sale indicated that CPS continues to push for more funding from the state of Illinois and aims to eliminate a more than $1 billion structural budget deficit by fiscal 2018.

With a financial fix for CPS entangled in the state's budget impasse, school officials said they would take cost-cutting action and rely on short-term borrowing if there is no solution by the time fiscal 2016 ends. Republican leaders of the Democrat-controlled state legislature plan to unveil legislation on Wednesday related to the district's fiscal crisis.

__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #58  
Old 01-28-2016, 04:32 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 85,067
Blog Entries: 6
Default

CHICAGO PUBLIC SCHOOLS

http://www.cnbc.com/2016/01/27/reute...postponed.html

Quote:
UPDATE 1-Chicago Board of Education's $875 mln bond sale postponed

(Adds pre-pricing marketing scale, April 2015 sale, details of bond issue)

CHICAGO, Jan 27 (Reuters) - Facing hefty yields, the financially ailing Chicago Public Schools (CPS) postponed Wednesday's planned $875 million bond sale and will evaluate the timing on a day-to-day basis, a school official said.

Ron DeNard, senior vice president of finance, said the delay was recommended by the district's financial advisers.

"The situation is dynamic, and giving investors more time will be of benefit to CPS," he said in a statement.

The nation's third-largest public school system is struggling with a structural budget deficit of at least $1 billion. Its fiscal woes led Illinois Governor Bruce Rauner and Republican lawmakers last week to push for a state takeover and potential bankruptcy for CPS - moves that were quickly shot down by Chicago Mayor Rahm Emanuel, who controls the school system, and leaders of the Democratic-controlled legislature.

A pre-pricing marketing scale circulated by underwriters on Tuesday for the "junk"-rated general obligation bonds showed yields topping out at 7.75 percent with coupons of 7.25 percent for bonds due in 2041 and 7 percent for bonds due in 2044. That yield indicated a so-called credit spread over Municipal Market Data's benchmark triple-A yield scale of as much as 506 basis points.

That spread was wider than the 464 basis-point spread the school system's 19-year bonds were fetching in secondary market trading last week.

In the district's $275.6 million GO bond sale last April, the spread for 20-year bonds was only 285 basis points.

__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #59  
Old 02-03-2016, 05:53 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 85,067
Blog Entries: 6
Default

....and they've tried again:
http://www.bondbuyer.com/news/market..._medium=social

https://twitter.com/TheBondBuyer/sta...98846095626240

Quote:
Chicago Board of Education trimmed its offering by $200 million and priced it to yield as high as 8.5%. http://bit.ly/1SHTWI2
That is crazy-go-nuts
__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #60  
Old 02-04-2016, 02:41 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 85,067
Blog Entries: 6
Default

more:
http://www.reuters.com/article/us-ch...-idUSKCN0VC1XG

Quote:
World | Wed Feb 3, 2016 6:29pm EST Related: U.S.
Chicago schools slash high-yielding 'junk' bond deal
CHICAGO | BY KAREN PIEROG AND DAVE MCKINNEY

Chicago’s troubled public school system on Wednesday had to slash the size of one of the biggest "junk" bond offerings the municipal market has seen in years and agree to pay interest costs rivaling Puerto Rico’s in order to lure investors into the deal.

The Chicago Board of Education managed to sell only $725 million of an originally planned $795.5 million of tax-exempt bonds, and yields on the deal topped out at 8.5 percent, a massive premium relative to higher-rated debt sold in the U.S. municipal bond market and a clear indication of investors’ view of the depths of the district’s fiscal woes.

Wednesday’s sale came a week after the school system had to pull the deal in its first attempt at an offering amid worry by investors that the district could end up in bankruptcy.

The nation's third-largest public school system has become dependent on borrowing to bolster its budget, which is sinking under escalating pension payments, despite credit ratings that have dropped into the "junk" level.

The 8.5 percent yield for bonds due in 2044 with a 7 percent coupon was slightly below the 8.727 yield for 21-year bonds in the municipal market's last big junk bond sale - a $3.5 billion Puerto Rico issue in March 2014.


__________________
It's STUMP

LinkedIn Profile
Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 02:12 PM.


Powered by vBulletin®
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.19042 seconds with 9 queries