From Bloomberg News | With a 2011 budget deficit projected at more than $650 million, the City of Chicago’s credit rating is in danger of sinking further. In fact, it already paid a premium in an August bond offering for schools.

“They’re a AA rated borrower that is trading as if it was rated A,” said Richard Saperstein, managing director at Hightower Advisors Treasury Partners in Chicago told Bloomberg. “This means they’re in line for a downgrade. The market is telling you something.” Get the full story >>