Finance

Bonds have traded up since the company last week announced a tentative bondholder deal and project update and financing details.

The new-issue calendar falls to an estimated $1.154 billion, with $939.1 million negotiated deals on tap and $214.8 million of competitives.

The deal would give the company time to seek additional equity, debt and federal funds.

The long-awaited jobs report paints a mixed picture for market participants: nonfarm payrolls increased by a greater-than-expected119,000 in September, but the unemployment rate rose to 4.4%.

The market is in a bit of a lull right now as it braces for a deluge of economic data, which could spark volatility, said Jeff Timlin, a partner at Sage Advisory.

The rating agency lowered the outlook to stable on its A-plus rating, saying Pennsylvania didn't do itself many favors in its fiscal 2026 budget season. 

The muni market has "demonstrated more conviction with steady demand and appealing relative yields weighing on the long-end while shifting dynamics on the short-end have led to municipals selling-off," said Tim Iltz, fixed income credit and market analyst at HJ Sims.

Moody's placed a negative outlook on the higher education earlier this year. 2026 looks even more uncertain, according to a new report from the rating agency.

Federal Reserve Gov. Christopher Waller said in a speech Monday that private and public-sector data suggests that the labor market is continuing to weaken, making a 25 basis point rate cut in December a prudent choice.

The "data dumps" over the next several weeks could lead to market volatility, said Abdulla Begai, director and fixed income portfolio management at A&M Private Wealth Partners.

Moody's cited the airport's "significant improvement in liquidity" and "continued enplanement recovery" in its decision to upgrade the rating to Aa3.

Issuance year-to-date is at $505.245, just shy of 2024's record of $507.585 billion, with $11.109 billion of supply on the calendar for the week of Nov. 17.

Negative rating and outlook revisions for U.S. K-12 public school districts rose markedly from 2024 to 2025, according to S&P Global Ratings.

For munis, the end of the shutdown helps steady the backdrop, said James Pruskowski, an investor and market strategist.

Fed Gov. Stephan Miran has spent his short tenure at the central bank arguing that disinflation in housing and immigration reforms will tamp down inflation in the near term. But other economists say the timing, degree and context of those effects is very much in question.

"Continuing yield stability ... suggests a comfortable market that, even with the shutdown apparently close to ending, may resist/lag potential price/yield changes in taxables," said Matt Fabian, president of Municipal Market Analytics.

Some of the most active sectors have been education (+29%), GOs (+17%) and healthcare (+17%), said Kim Olsan, senior fixed income portfolio manager at NewSquare Capital.

Assured Guaranty commented on Brightline and PREPA during its third-quarter earnings call, on which the company reported a 46% increase in third quarter gross par written year over year, to $7.85 billion from $5.38 billion.

Federal Reserve Governor Stephen Miran said emerging stresses in housing and private credit markets warrant a reduction to short-term interest rates. While preferring a 50 basis point cut in December, Miran said he would settle for a 25 basis point reduction.

The muni market may see additional volatility due to "uncertainties related to the future of tariffs and stronger inflation prints," said Barclays strategists led by Mikhail Foux.