Build America Bonds

The balance of power in the House of Representatives continues to shift months before the midterms as Rep. Steny Hoyer, D-Md. who sits on the House Appropriations Committee announces he will not seek re-election this fall.

The Ohio State University went to market Tuesday with a $560 million deal to refund taxable Build America Bonds into tax-exempt debt.

With the advance refunding of tax-exempt munis still off the table, issuers are using existing market conditions to shed Build America Bonds and realize debt service savings through tender offers.

The Roosevelt Institute rolled out a new report on munis revealing the latest trends in public finance along with critiques and recommendations for alternative ways to fund infrastructure.

Bond attorneys are eyeballing the possibility of attaching a tax title to the surface transportation reauthorization that could include issues of great interest to the municipal bond community as the appropriations process remains stuck in first gear.

Sequestration on direct-pay bonds kicks in Oct. 1 without a fresh funding bill.

The District of Columbia Water and Sewer Authority is selling $216.5 million of revenue refunding bonds and financing the Clean Rivers Project, a massive effort designed to reduce combined sewer overflows into the local waterways.

A record-breaking year for bond issuance will likely be followed by another strong year for munis even as the threat of ending the tax-exempt status appears in writing within the halls of Congress.

The legislative reconciliation process will move fast and cutting the budget is in vogue. As such, we must recalibrate our goals as an industry to reflect the new political paradigm.

The muni market saw $507.585 billion of debt issued in 2024, up 31.8% from $385.061 in 2023. This surpasses the previous record of $484.601 billion in 2020 by more than $20 billion, per LSEG data.

The Los Angeles school district was at the forefront of a Build America Bond refunding wave with its $2.9 billion deal.

Nearly $1 billion of outstanding BABs may still be called back before yearend.

The trade group alliance is lobbying for the restoration of advance refunding and other legislative changes.

The Franklin County Convention Facilities Authority will issue $138.2 million of lease revenue anticipation refunding bonds to refund or redeem outstanding Build America Bonds.

The high-grade issue is expected to be well received by the market. D.C. joins a growing list of issuers refunding outstanding BABs amid lower rates.

The $180.24 million deal comprises $76.085 million of metropolitan district bonds and $104.155 million of consolidated public improvement bonds.

The New York City Transitional Finance Authority is set up to refund Build America Bonds as part of a $2.11 billion deal slated to land in the market this week.

Total volume currently stands at $224.13 billion, up 38.5% from $161.848 billion at this time last year. As the end of the first half approaches, several firms are revisiting their supply projections for the year, given the growth so far this year.

Dual threats of lawsuits and loss of investors loom over calling the bonds.

More than two dozen issuers have announced plans to refund their BABs this year, despite objections from investors.