The Bond Buyer
Why MMA says Chicago should avoid selling pension bonds
“In the short-run, the shift of the pension liability to bonded debt may enable the city to realize some budgetary relief,” MMA writes in its weekly outlook. “But in the long-run we suspect that this would—as with most pension obligation-using governments before them—cost taxpayers more money and could weaken the city’s fiscal position despite a ‘savings’ claimed at issuance.”