Illinois primary market penalties shrink to levels of bygone era

The state said it had received strong enough order interest in the pre-marketing wire distributed Monday that it decided to accelerate the sale which drew “more than 700 orders from more than 130 different investors, including respected names that have not invested in the state for a decade,” the state’s Director of Capital Markets Paul Chatalas said in a statement.

Given the state’s vulnerability to headlines, “pricing ahead of the next headline” if orders have lined up is a wise move, said Matt Fabian, partner at Municipal Market Analytics. The supply calendar is also on the rise and that can impact interest.

A confluence of factors helped the sale, from the return of inflows and demand for higher-yielding paper to the state’s improving tax projections and a looming infusion of $7.5 billion from the $1.9 trillion American Rescue Plan signed by President Biden last week.

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