J.P. Morgan is imprudent to loan this money, but I’m sure they’re betting on being bailed out when the loan goes south, and it will.
>>J.P. Morgan is imprudent to loan this money...<
I doubt it. It would be interesting to learn the terms of the loan. It’s almost certainly a loan secured by something, whether school property or, more likely, a prior claim on some sort of revenue such as yet-to-be-collected property taxes.
But if you’re an individual who invests in municipal bonds, don’t let the fact that J.P. Morgan bought some influence your decision. Anything you buy now is very likely to end up in the toilet. Illinois is over the edge, the canary in the coal mine for the rest of the blue states. The big question is whether the U.S. government is a blue state. It just might be.