There has been a growing trend among state and local governments to redeem or refund their Build America Bonds (BABs) in light of current interest rate fluctuations. This trend has raised questions regarding the legality of such actions, particularly as issuers navigate the complex landscape of subsidy payments and budget restrictions. BABs, which were introduced
Bonds
The municipal bond market remained relatively stable on Thursday, with municipal mutual funds experiencing inflows that surpassed $1 billion. At the same time, U.S. Treasuries showed strength, and equities finished the day in positive territory. The muni-to-Treasury ratio varied across different maturity levels, with the 30-year ratio standing at 82% according to Refinitiv Municipal Market
Broker-dealer firms are taking on a more substantial role in the primary market to compensate for the gap created by Citi’s departure from the municipal bond business. Panelists at the Bond Buyer’s Southeast Public Finance conference highlighted the significance of this shift, emphasizing that Citi’s exit had a considerable impact due to its significant balance
Illinois has announced that it will be issuing $1.8 billion of general obligation bonds in order to fund accelerated pension benefit payments and capital expenditures through the Rebuild Illinois program. The bonds will be split into $250 million taxable Series 2024A and $1.55 billion tax-exempt Series 2024B. The fixed-rate bonds are set to be priced
In a recent high-profile transaction involving Florida’s Brightline passenger train, Assured Guaranty played a crucial role by wrapping $1.13 billion, or 51%, of the $2.219 billion of senior bonds issued by the passenger rail line. This significant investment gives Assured Guaranty control in the event that the issuer faces debt payment trouble. With an irrevocable
In the aftermath of a challenging year, healthcare issuance has shown signs of a rebound as systems reenter the bond market to address pent-up needs. According to data from LSEG, healthcare issuance has surged by 122.2% year-over-year through April, reaching $9.062 billion in the first four months of 2024. Despite this positive trend, the sector
In the world of finance, trends are constantly shifting and evolving. The municipal bond market is no exception to this rule. Recent data shows that municipals were relatively stable in secondary trading on Tuesday, despite some fluctuations in the primary market. With a slew of new deals hitting the market, including a large Novant healthcare
Brightline, a privately owned passenger train service in Florida, recently made headlines with its bond issue in the tax-exempt market. The company offered over $3.1 billion of low-investment grade and unrated bonds, some of which had yields as high as 12%. Despite the risky nature of these bonds, there was strong demand for all of
The city of Quincy, Massachusetts, has taken a groundbreaking step by issuing $10 million in tax-exempt bonds utilizing blockchain technology. This move, in partnership with J.P. Morgan, marks a significant development in the municipal bond market and signals the potential for a transformative shift in the way bonds are issued and traded. In a first-of-its-kind
The municipal bond market experienced slight weakness in secondary trading on Wednesday, with a particular focus on the Los Angeles Unified School District’s nearly $3 billion pricing for institutions. The rise in U.S. Treasury yields and mixed performances in equities also contributed to the market dynamics. Despite this, GW&K Investment Management strategists noted that munis