Brightline, a privately owned passenger train service in Florida, recently entered the tax-exempt market with more than $3.1 billion of low-investment grade and unrated bonds. This move attracted a lot of attention from investors due to the high yields offered, some as high as 12%. Investor Response Despite the risky nature of the bonds, there
Bonds
The city of Quincy, Massachusetts, recently made history by issuing $10 million of tax-exempt bonds using blockchain technology for the first time. This groundbreaking transaction, facilitated by J.P. Morgan, marks a significant milestone in the municipal bond market and sets the stage for a potential transformation in the way bonds are issued in the future.
The municipal market experienced slight weakness in secondary trading on Wednesday, with a focus on the Los Angeles Unified School District’s nearly $3 billion pricing for institutions. This performance was influenced by the rise in U.S. Treasury yields and mixed results in equities. According to GW&K Investment Management strategists, munis entered the second quarter in
The municipal bond market was primarily focused on the primary market as investors assessed several large deals, while the secondary market took a backseat. U.S. Treasuries showed improvement and equities rallied based on earnings reports. This dynamic created a scenario where new issuances were on the rise, leading to elevated muni yields, as noted by
Rockefeller Asset Management recently announced the addition of three new portfolio managers to strengthen its municipal investment strategies within its fixed income division. Scott Cottier, Mark DeMitry, and Michael Camarella, who previously managed the California Value Municipal Income Trust and the Trust for Investment Grade New York Municipals at Invesco, will be joining Rockefeller. These
Florida’s Brightline passenger train has faced significant challenges with its debt restructuring plan, including the addition of unrated tax-exempt paper to the mix. This move has raised concerns among investors, who are closely monitoring the pricing and potential risks associated with the new bonds. The restructuring plan includes a total of $2 billion in tax-exempt
In the world of municipal bond mutual funds, 2024 has seen its fair share of challenges. Recent reports from LSEG Lipper have indicated significant outflows, marking a new trend for the year. These outflows have been linked to various factors such as tax deadlines, rising interest rates, and volatile movements in the U.S. Treasury market.
The municipal bond market experienced little change on Wednesday due to a slowdown in supply and small inflows into muni mutual funds. Despite this, U.S. Treasury yields declined, and equities faced losses, showcasing a complex interplay of factors affecting the market. The Investment Company Institute reported modest inflows into municipal bond mutual funds for the
The New York City Municipal Water Finance Authority is preparing for its second issuance this year, totaling $450 million in fixed-rate second resolution bonds. This issuance includes $400 million for system improvements and $50 million for refunding purposes. The authority has a total outstanding debt of $33 billion, and it issued $1.4 billion in March.
Florida is taking proactive measures to protect against future catastrophic events by coming to market early with a $1.5 billion taxable bond sale. The State Board of Administration Finance Corp. is planning to issue $1.5 billion of taxable revenue bonds in two maturities. Originally, the plan was to offer five-, seven-, and 10-year maturities, with