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The Windy City, the biggest in the U.S. with a below investment-grade rating, has become a key locus of distress in the $3.7 trillion municipal-bond market, contending with some of the same strains that helped push Detroit into a record bankruptcy three years ago.

Regarding the positive comments by Nuveen, note that they own Chicago bonds, as the authors pointed out. Even with that disclosure, this is part of why you can’t get objective opinions out of the muni industry. They could well be planning to sell those bonds; you just never know the full circumstances. It’s called “talking your book.”

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