Municipal bonds were little changed Monday in steady trading as investors await a larger-than-usual new-issue calendar. Munis largely ignored the moves in U.S. Treasuries as the 10-year settled in at 1.59% and equities were mixed. Despite the recent outflows and volatility of the Treasury market, municipal bonds have and should continue to outperform, sources said.
The 100-year-old Cleveland Museum of Natural History makes its tax-exempt market debut this week to raise financing for a sweeping transformation plan. The $63 million issue is slated to price Thursday through the Cleveland-Cuyahoga County Port Authority. Morgan Stanley is the underwriter. The bonds are an unsecured general obligation of the museum and mature in
The Municipal Securities Rulemaking Board’s proposal to expand Regulation Best Interest to cover bank dealers would affect just a handful of dealers in an effort to reach regulatory parity. In a notice filed Thursday afternoon, the MSRB asked for comment on proposed changes to its Rule G-19 on suitability, to extend the requirements of the
Stifel has created a program that will donate up to $50,000 to hunger relief programs in areas it has offices while raising awareness of projects built by its clients’ bonds in those regions. In November, the firm teamed up with Feeding America, a national hunger relief organization. “Around the holidays everyone’s attention gets drawn to
The Puerto Rico Oversight Board’s proposed central government debt adjustment faces several obstacles, most prominently bond insurers’ possible withdrawal of support and local government opposition. Puerto Rico bankruptcy Judge Laura Taylor Swain gave the board until the end of Monday to submit a plan of adjustment for bonds, pensions, and unsecured debts. The board reached
It was a quiet and uneventful Friday as the municipal market viewed the higher-than-expected growth in the jobs report as an indicator of economic recovery ahead and it prepared for the coming of more than $9 billion of tax-exempt and taxable supply combined next week. California will dominate the primary market with its $1.8 billion
California Gov. Gavin Newsom signed a $6.6 billion package pitched as speeding up the return to in-person instruction in the state’s schools. The bill provides $2 billion to schools to spend on personal protective equipment, ventilation upgrades and rapid COVID-19 testing to make it safer to return to schools amid the pandemic. It also provides
The California State Treasurer’s Office sold a higher percentage of new money bonds in 2020 than in 2019, when about two-thirds of its volume was refunding. “That is a trend I expect you will continue to see, with us doing less and less refunding going forward,” said Tim Schaefer, deputy treasurer for public finance. “We
Municipal bonds strengthened across the yield curve Thursday, diverging from rising U.S. Treasuries and a large sell-off in equities after Federal Reserve Chairman Jerome Powell tried to calm investor concerns over inflation and rising rates to no avail. Refinitiv Lipper reported the first outflows since Nov. 4 at $600 million after $37 million of inflows
Far West municipal issuers sold $99.1 billion of debt last year, a 16% increase from 2019, picking up the pace in the second quarter, according to Refinitiv data. Bond sales in the nine-state region fell 18.8% year-over-year in the first quarter to $15.4 billion but jumped 47.8% year-over-year in the second quarter, rose similarly in
New issues repriced to lower yields Wednesday while secondary trading showed firmer trades leading triple-A benchmarks to strengthen on the short end even as U.S. Treasuries saw more losses and equities improved. Primary pricings showed investors comfortable moving in at higher yields with competitive deals from gilt-edged Baltimore County, Maryland, at or through triple-A benchmarks.
Municipal bond issuers in the Southeast sold $76.91 billion of bonds in 1,152 issues in 2020, putting volume slightly ahead of 2019, according to Refinitiv data. The 1.6% volume boost in the 11-state region trailed the national increase of 14.3%, which set an all-time record of $483.64 billion in 13,273 deals in a year indelibly
John Knox, 64, a public finance lawyer and former partner at Orrick who aided the cities of Vallejo and Stockton through bankruptcy almost a decade ago, died at home on Feb. 27. John Knox, a public finance lawyer and former partner at OrrickGittings Photography Knox was a summer associate in 1986 at the global law
Governors and mayors are demonstrating bipartisan support for the direct federal aid approved by the House last week without any Republican congressional votes. The $1.9 trillion American Rescue Plan, which includes $350 billion in direct state and local aid, is expected to be approved by the Senate on party lines by the end of this
Puerto Rico’s leader of its debt oversight agency on Monday told high-yield investors that Puerto Rico’s central government was on the way to be able to sell new bonds. Puerto Rico Fiscal Agency and Financial Advisory Authority Executive Director Omar Marrero made his pitch to participants at the JPMorgan 2021 Global High Yield and Leveraged
North Carolina needs to spend an additional $20 billion over the next 10 years on transportation infrastructure to boost the state’s rating to “good” from “mediocre.” The NC FIRST Commission released an in-depth analysis on infrastructure last month that offers a wide range of possible actions for legislators to consider, including raising the debt capacity
Northeast municipal issuers sold $129.99 billion of debt last year, a 14.7% increase from 2019 as states, cities and agencies scrambled amid the COVID-19 disruption. Taxable deals and refinancings helped fuel the spike. Nationally, par amount totaled $483.6 billion, up 13.4% from the previous year, according to data from Refinitiv. “Issuance was really driven by
Bipartisan bills to expand the use of tax-advantaged bonds that are being reintroduced in the new Congress have favorable odds for being signed into law this year. The most notable one for the public finance sector came first on Thursday with the reintroduction of a Senate bill to reinstate tax-exempt advance refunding sponsored by Sen.
Municipal new issue volume in February fell year-over-year as tax-exempts led the way down and refunding volume sank amid more new-money issuance. While issuance fell significantly from 2020, it was higher than January’s and only the fifth time in 35 years that volume exceeded $30 billion in February. Total volume fell 27.5% to $30.608 billion
Municipal bonds were little changed Friday after a sell-off in global bond rates helped send muni yields more than 40 basis points higher on the 10- and 30-year triple-A benchmark since the rout began on Feb. 17. The market took a much-needed breather Friday and U.S. Treasuries pared Thursday’s losses to see the 10-year fall
The Puerto Rico Oversight Board took steps to advance the territory’s overdue audited financial statements Friday. Board members have said current comprehensive annual financial reports are aimportant for Puerto Rico to ultimately sell bonds again. The Puerto Rico Oversight, Management, and Economic Stability Act indicates that Puerto Rico should have current financial information. Puerto Rico
The Federal Reserve’s response to the COVID-19 pandemic has pushed interest rates to historic lows over the past year. Changes to the Fed funds target rate and an extensive bond-buying program have driven down rates both at the short and long end of the yield curve. The 10-year Treasury, with a yield that had hovered
The fate of Illinois’ S&P bond rating will depend on its recovery from COVID-19, federal stimulus and the final form of its fiscal 2022 budget, the rating agency said Thursday. In its first published review of Gov. J.B. Pritzker’s proposed spending plan, S&P Global Ratings laid out the risks, uncertainties and potential positives of the
In a wide-ranging conversation, Manulife Investment Management Global Chief Economist & Global Head of Macroeconomic Strategy Frances Donald discusses the COVID pandemic, inflation, how the markets may be misreading the Fed, why economic indicators may not be telling economists what they need to know, ESG and green spending, and the economy. Gary Siegel hosts. (35
The Tennessee State School Bond Authority netted a record low interest rate on its largest ever bond sale, which will save state colleges and universities almost $112 million in net present value interest cost savings over the next 24 years. Jefferies priced the authority $713.4 million of taxable higher education facilities refunding bonds the week
The fiscal forecast for Louisiana is a bit brighter a bond rating agency lifted its outlook for the state. Moody’s Investors Service on Feb. 12 revised the outlook on the state’s general obligation, appropriation and highway improvement bonds to positive from stable. Moody’s also affirmed the state’s GO rating at Aa3. Bourbon Street in New
Municipal yields rose for the sixth day in a row Tuesday, pushing the 10-year above 1%, a level not seen since May 2020. High-grade deals priced and secondary trading showed bonds exchanging hands at yields higher than triple-A benchmarks in some cases, but a healthy two-way flow was evident, even if there are signals that
The Puerto Rico Oversight Board announced a central government debt deal that could pay out 14.1% less than a debt deal announced about a year earlier. The deal reached Feb. 15 and announced Tuesday promises to pay at least $34.1 billion, less than the $39.7 billion of central government debt service aggreement reached on Feb.
The Puerto Rico Treasury announced steps to crack down on tax fraud, which is widely believed to be a major problem on the island. Reducing tax fraud is one of the goals of the fiscal plan approved by the Puerto Rico Oversight Board in May. The U.S. Internal Revenue Service will collaborate with the Puerto
Texas temperatures have returned to seasonal norms, but the public finance crisis from last week’s deep freeze is just beginning. The winter blitz led to blackouts, frozen pipes and a 10,000% surge in wholesale power prices in an economy already struggling with the COVID-19 pandemic. The wintry scene in the Texas state capital Thursday. Austin