Welcome to the Reader‘s morning briefing for Wednesday, June 21, 2017.
CPS borrows $275 million at 6.39 percent interest rate in order to make pension payments
Chicago Public Schools is set to borrow $275 million from J.P. Morgan at a “sky-high” interest rate of 6.39 percent in order to make a mandatory pension payment by June 30, according to the Sun-Times. The interest rate is “more than four times the interest rate a typical government would pay on the same borrowing deal,” according to experts. “CPS has no regular market access, so the price they pay to borrow is always the product of negotiation,” Matt Fabian, a partner at Municipal Market Analytics, told the newspaper. [Sun-Times]
