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Traders Shrug Off Suit Challenging $14 Billion of Illinois Debt

(Bloomberg) A lawsuit Monday seeking to have $14.3 billion of Illinois bonds thrown out by a court lit up the phone lines of Wall Street trading desks, where analysts fielded calls from investors worried about the odds their investment in the state’s debt could be worthless.
But trading prices show bondholders see little chance that the legal challenge will succeed.Taxable Illinois debt issued in 2003, which was targeted in the lawsuit, slipped early Tuesday, when a customer sold $5 million worth for about 103 cents on the dollar, down from an average of 104.5 cents Monday.

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