Triple-B rated credits from Puerto Rico Electric Power Authority and Chicago O’Hare International Airport whetted investors’ appetites for higher yields, causing the secondary market to weaken Tuesday.

Morgan Stanley issued a consensus wire for $600 million of PREPA power revenue bonds ahead of Wednesday’s pricing. Traders said prices looked cheap. The bonds are rated Baa3 by Moody’s Investors Service, BBB by Standard & Poor’s, and BBB-minus by Fitch Ratings.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.