The auction has begun for the Chicago Skyway lease, and some big players are lined up. But bidders will have to pay over $2 billion to take out Assured Guraranty’s wrap of the project debt, otherwise the deal is subject the bond insurer’s approval.

Wall Street sources believe Assured Guaranty is a willing owner. “They feel that they’ve over-reserved for this liability and believes it can get a full recovery by just holding the asset and collecting the net revenue,” says a banker.  “If so, they would step into the role of the concessionaire under the existing concession agreement.”