Markets

A cybersecurity scare at a public power utility in Vermont has some municipal market participants thinking about how an attack could affect the nation's utility bond issuers.

In the week ended Jan.12, the weekly average yield to maturity of the Bond Buyer Municipal Bond Index fell five basis points to 4.20% from 4.25% in the previous week. The BB40 Index is based on the price of 40 long-term bonds.

Kentucky’s credit outlook was revised to negative ahead of an upcoming bond deal, a change S&P Global Ratings said was triggered by the state’s unfunded pension obligations.

So-called intervention bankruptcy – combining federal and state resources – could help governments manage municipal insolvency, said a Manhattan Institute report.

Analysts affirmed the stable outlook for the healthcare sector, while acknowledging that repeal of the Affordable Care Act could change the landscape.

The recently enacted National Defense Authorization Act is a credit positive for privatized military housing project bonds, Moody’s Investors Service said in a comment released on Friday.

Fund managers' reaction to a possible repeal ranged from cautious to opportunistic, as President-elect Trump and lawmakers say they plan to transition to a new health care program.

The weekly average yield to maturity of The Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, decreased three basis points to 4.25% from 4.28% from the previous week.

Public utilities have the rate-setting flexibility to handle an 11% drop in demand for electricity through 2040, according to Fitch Ratings.

In the week ended Dec.29, the weekly average yield to maturity of the Bond Buyer Municipal Bond Index fell seven basis points to 4.28% from 4.35% in the previous week. The BB40 Index is based on the price of 40 long-term bonds.