Citing the city’s glacial economy, Fitch Ratings cut the city of Chicago’s bond rating. In addition to the Windy City’s economic downturn, Fitch also cited its inability to resolve its mounting union pension concerns. Specifically, Chicago’s unlimited tax general obligation (ULTGO) bonds and its sales tax bonds were both dropped to an A- rating from AA-. While this downgrade doesn’t mean Chicago will follow Detroit down the bankruptcy trail, it does show another of America’s major cities may be teetering on the abyss. Investors would be wise to seek out other bond options at this point.
Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
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Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.
Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:
Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services: