Nebraska

A Nebraska bill to give bondholders priority over other creditors in the event of a municipal bankruptcy is not likely to pass in the 2015 legislative session as different interest groups negotiate its language.

Members of a banking committee approved a Nebraska bill that would favor bondholders over pensioners in the event of a bankruptcy, sending the measure to the floor of the Legislature.

Officials from Nebraska’s largest cities urged lawmakers not to put “Goldman Sachs ahead of the common citizen” by advancing a bill that would favor bondholders over pensioners in the event of a bankruptcy.

Municipal bond borrowing by Midwestern issuers picked up steam last year, rising by 6.9% to $63.5 billion as issuers loosened the reins a bit on new money borrowing and refundings recorded double-digit gains thanks to favorable interest rates.

Nebraska legislators will hold a public hearing March 3 on a bill that would give bondholders priority over retirees in the event of a bankruptcy.

A proposed bill requiring Nebraska issuers to boost disclosure and stress bondholders' lack of priority over pensioners could spook national investors and drive up borrowing costs, some market participants warned state lawmakers Wednesday.

A Nebraska state senator introduced a pair of bills that would either give bondholders a clear priority over pensioners in the event of a bankruptcy or force cities to advertise their lack of priority on the first page of an official statement.

Midwestern voters head to the polls Tuesday to decide the fate of a handful of finance-related ballot questions and the leadership of eight states, including several where debate over fiscal pressures is taking center stage.

Borrowing by Midwest issuers slid 13.2% for the first half of 2014 but new-money issuance fueled by Chicago and Illinois deals helped boost new-money by 16.8%.

Omaha Public Power District is bringing $110 million of subordinate-lien refunding bonds to market this week, marking the district's first deal since its nuclear plant has come back online.

A bill that would allow Nebraska to issue bonds for highway construction advanced last week despite an eight-hour filibuster aimed at derailing the measure.

Moody's downgraded Omaha's convention hotel to A1, warning that the city may be forced to step in to cover rising debt payments.

Nebraska will consider issuing bonds for highway projects for the first time in decades.

Nebraska Gov. Dave Heineman said the state has recorded a record-high cash reserve and that he will push lawmakers to pass $500 million in tax cuts this year.

Bondholders owed nearly $20 million will be paid $50,000 in a bankruptcy settlement plan for the Great Platte River Road museum archway in Nebraska, a colossal financial failure.

Omaha, Neb. lost its prized triple-A rating from Standard & Poor's and saw a negative outlook revision from Moody's due to the city's large unfunded pension obligation.

Moody's Investors Service last week downgraded nearly $1.9 billion of debt issued by Omaha Public Power District amid the district's ongoing problems with its nuclear plant.

Rising interest rates and lagging economic growth sidelined borrowers in the Midwest where issuance dipped by 12% to $34 billion during the first half of 2013 compared to the same time last year.

With income taxes boosting state revenues across the Midwest, Ohio, Nebraska and North Dakota all expect to have record-high rainy day funds heading into a new fiscal year.

Moody's Investors Service warned it may downgrade the Omaha Public Power District, one of the country's highest-rated utility, as the OPPD struggles to bring its nuclear plant back online amid increased federal regulatory scrutiny.