Finance

The correction to the municipal market has improved muni to UST ratios while uncertainty hangs over ahead of the election. J.P. Morgan's Peter DeGroot said the firm expects the end of next week "will mark the end of the difficult technical period in 2024 and believe that net supply in November will lead to better valuations broadly in the municipal market."

Several macro trends have converged to drive growth in municipal bond issuance, said participants at The Bond Buyer's California Public Finance conference.

Vales is currently a director for fixed-income focused broker-dealer InspereX and an independent trustee for the Axonic Funds, having previously served as the CEO of electronic trading platform TMC Bonds, which ICE acquired in 2019.

Build America Mutual insured the majority of the maturities in the West Contra Costa Unified School District GO deal.

The downgrade affects $2.1 billion in bond debt and extends to its utility debt.

While fundamentals remain strong — with credit upgrades outpacing downgrades by 3.5 times so far in 2024 — technical factors have been "less supportive," Principal Asset Management strategists said in a report.

San Francisco's slow recovery from the pandemic and continued financial pressures drove the downgrade, Moody's analysts said.

More project finance deals are part of FHN Financial's plans to grow its municipal finance business.

"The identity of the marginal buyer may be shifting, and with that the market's valuation of structure and liquidity," said Matt Fabian, a partner at Municipal Market Analytics.

As technology options grow, firms are looking for ways to streamline and scale workflows.

Demand for munis remains "insatiable," said Daryl Clements, a municipal portfolio manager at AllianceBernstein.

Christopher Roberts joins the firm as a managing director, Joey Dierker as an associate director, Soledad Mancias as a municipal underwriter, and Steve Basset as a director.

Tourism Development Tax, sales tax, and Professional Sports Facilities tax and revenue refunding bonds were upgraded, impacting $628 million of debt.

Conference sponsorships targeting bond firms led Mayor John Whitmire to call for a probe into actions by Controller Chris Hollins, who denied any wrongdoing.

"Buyer interest comes as forward supply is projected around $20 billion (the high water mark over the last year) while offsetting calls and maturities sit about $2 billion lower, creating a net supply surplus," said Kim Olsan, a senior fixed income portfolio manager at NewSquare Capital.

After the school board resigned, the rating agency put Chicago Public Schools on notice that it will watch how its tricky financial situation is handled.

The muni market enters the last quarter of 2024 in "excellent shape," said GW&K Investment Management partners John Fox, Brian Moreland, Kara South and Martin Tourigny.

After Minnesota's second-largest healthcare employer was downgraded by rating agencies, the Minnesota Nurses Association took aim at Allina Health's board.

Supply ramps up this week to an estimated $13.361 billion, with several billion-dollar pricings on tap.

Florida will use its own cash, not from a refunding bond, to buy up to $500 million of bonds tendered.