According to the Investment News, a housing development for retirees in Chicago with about $229 million of long-term debt became the largest municipal bond default this year when it missed a Sept. 1 payment.
The article states that the Illinois Finance Authority said Sept. 20 in a disclosure statement that the Clare at Water Tower, a 53-story apartment building with Lake Michigan views, will not make any further payments until debt-restructuring talks are done. The article goes on to say that the developer, Franciscan Sisters of Chicago Service Corp., acknowledged that it skipped the September payment.
It used to be municipal bonds were one of the safest investments out there. However, in this economic climate, even municipal bonds come with substantial risks and the rise in defaults has made muni bonds a risky bet for very conservative investors.
If you have questions about a municipal bond sold to you by your financial professional, the securities attorneys of The White Law Group may be able to help. For a free consultation, call the firm’s Chicago office at 312/238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit the firm’s website at http://www.whitesecuritieslaw.com/.