Chicago Transit Deal Attracts Investor Cash Flooding Muni Market

The second-largest transit system in the US is benefiting from municipal bond investors looking to put billions of dollars to work.

The Chicago Transit Authority sold about $530 million in sales-tax-backed bonds on Thursday. Proceeds from the deal will finance projects such as the Red Line extension and refund old debt for savings. It comes as the Trump administration threatens to freeze or withdraw funding for transit systems and projects in Chicago and other major cities if they fail to comply with the administration’s policies.

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Inflows into the ...