In 2016, JP Morgan and Nuveen Asset Management made 9.5% profit on $150 million, and 25% on $613 million respectively in Chicago Public School (CPS) bonds. How did these investment firms make these types of profits from the CPS? The Wall Street Journal reported that Nuveen held few CPS bonds in recent years. It has been watching prices closely since May 2015. During that time Moody's cut CPS credit ratings to junk. Nuveen dedicated an analyst to cover CPS full-time to better understand its capacity to increase revenue and the likelihood of a bankruptcy filing. Nuveen's analysis asserted that CPS default risk was lower than its bond prices suggested. In February 2015 Nuveen bought 36% of CPS bonds from J.P. Morgan sold for about 84 cents on the dollar. Demand for CPS debt began to grow as investors realized that the school board could use budget cuts, local aid, and tax revenue to account for any gaps in its budget. With the risk associated with repayment received