It's Official at 2.65 the 10 year T pays 1% less than IL Munis

[william the wie]

let the short sales begin.

 

[Toddsterpatriot]

What are you going to short?

 

[Pavel Svinchnik]

That's the risk factor. Will Illinois have the money to pay back those munis over the ten years?

 

[william the wie]

That's the risk factor. Will Illinois have the money to pay back those munis over the ten years?

Since they have been in vendor credit default since the 90s I doubt it, with two more scheduled fed rate hikes this year and three next year I doubt that a lot.