The New York Metropolitan Transportation Authority Board recently granted approval for the agency to refund its outstanding Build America Bonds, potentially redeeming as much as $3.73 billion of taxable paper. This decision comes amidst financial struggles for the authority and uncertainties surrounding its congestion pricing plan. Financial Implications The potential refunding of the MTA’s taxable
Bonds
The Municipal Forum of New York recently hosted its 33rd annual awards and leadership fellows fundraising dinner to honor outstanding individuals in the municipal finance industry. Among the recipients were Marjorie Henning, Albert Simons, and Jacques Jiha, who were recognized for their significant contributions and achievements. The event serves as an opportunity to celebrate the
Municipal bonds experienced fluctuations in certain areas as the week’s final major releases unfolded, with municipal bond mutual fund flows demonstrating retail participation and high-yield bonds consistently outperforming the broader investment-grade market. Uncertainties surrounding inflation expectations and potential rate cut timings prompted pressure on U.S. Treasuries, as economic data and Federal Reserve statements gave market
Many state and local governments are currently facing a legal battle regarding the redemption or refunding of their Build America Bonds (BABs). These bonds, which were authorized as part of a stimulus program during the Obama administration, allowed issuers to sell taxable bonds and receive a subsidy from the federal government on the interest rates
The municipal bond market saw minimal changes on Thursday, with an influx of over $1 billion into muni mutual funds. This increase in funds occurred amidst a backdrop of firmer U.S. Treasuries and rising equities. The muni-to-Treasury ratios varied across different maturity periods, with the 30-year ratio standing out at 82%. Muni bond mutual funds
In the wake of Citi’s departure from the municipal bond business in December, broker-dealer firms have been quick to step up in the primary market. Industry experts attending the Bond Buyer’s Southeast Public Finance conference in Florida noted the void left by Citi’s exit, emphasizing the need for other market participants to fill the gap.
The state of Illinois is set to issue $1.8 billion in general obligation bonds to fund accelerated pension benefit payments and capital expenditures through the Rebuild Illinois program. The bond issue consists of $250 million taxable Series 2024A and $1.55 billion tax-exempt Series 2024B. The bonds are expected to be fixed-rate and will be priced
The recent transaction involving Florida’s Brightline passenger train and Assured Guaranty highlighted the importance of insured bonds in infrastructure financing. Assured Guaranty wrapped over half of the senior bonds issued by the passenger rail line, giving them control in the event of debt payment trouble. This control is crucial as it allows Assured to make
The healthcare sector has experienced a significant rebound in issuance, with a 122.2% increase year-over-year through April, reaching $9.062 billion in the first four months of 2024. This surge comes after a period of declining volume, driven by factors such as federal stimulus funding, strong investment returns, deferred capital plans, and rising rates. Hospital issuance
The municipal market has seen little movement in secondary trading, with the primary market taking center stage due to a number of deals being launched. Leading the pack is a substantial $1.9 billion Novant healthcare revenue bond deal in the negotiated market, alongside a general obligation sale from Delaware. While U.S. Treasuries experienced weakness, equities