Finance

Perform, a portfolio management platform for institutional investors who want to accesses the municipal bond market, will be integrated into ICE Bonds.

A key demand component in the market again flexed its muscles with ICI reporting another round of $2 billion-plus fund inflows.

“There’s been a lot of discussion about New York City and its future in the public domain. And when that happens it makes sense to solicit multiple opinions,” said Kroll Senior Managing Director Karen Daly.

A brightening revenue and liquidity picture and improved fiscal governance and management were cited as Moody's assigned a positive outlook.

Municipals outperformed U.S. Treasuries for a third sessions moving the 10-year municipal to UST ratio below 60%.

The two issuers that defaulted suffered from pre-existing conditions, according to Moody's analysts.

The Metropolitan Pier and Exposition Authority and the Illinois Sports Facilities Authority are heading into the bond market, buoyed by state rating upgrades.

Most participants expect better performance for munis in the near-term. Longer-term, a lot depends on rates, COVID and other outside factors, such as infrastructure.

Alan Rubin, principal, Blank Rome Government Relations

While municipals hit the pause button Friday, the movement in yields in the first week of July marked the largest one-week decline in 2021.

The public transit agenices are benefitting from sales taxes that fared better than expected through the pandemic and the state's stronger fiscal footing

Moody's Investors Service upgraded the county — home to Detroit — A3 from Baa1 while also elevating its rating outlook to positive.

S&P followed Moody's in raising Illinois' general obligation rating, moving it to BBB as the state's fiscal picture brightens.

Fund inflows are a demand component unlikely to slow during the heavy reinvestment season, keeping the yield environment squarely in issuers' favor.

The Fitch Ratings upgrade applies only to GO debt — the city's issuer default rating remains AA-plus. The GOs benefit from California’s 2016 statutory lien law.

S&P said the rating on the senior living revenue bonds Capital Trust Agency issued for borrower H-Bay Ministries Inc. of Texas will now be withdrawn in 30 days.

More of the same from the FOMC did little to move UST or munis. ICI reported the 17th consecutive week of inflows at $1.98 billion. July is looking good for municipal issuers.

U.S. Treasury 10- and 30-year yields hit February lows. Large blocks of high-grades in secondary trading led triple-A benchmarks to lower yields by two to four basis points across the curve.

Participants consider whether Illinois' recent upgrade is a one-off due to the flood of federal aid or a turning of the tide toward better fiscal decision-making that could help it climb further up the rating scale.

With better-than-expected payrolls, economists still caution full recovery is a ways away. Muni participants are closely following how the Fed's action — or inaction — will affect the municipal market going forward.