Government Development Bank for Puerto Rico

Municipal bonds were stronger on Monday ahead of this week’s rather paltry new issue supply calendar.

Weekly bond volume is forecast to fall to $5.9 billion from $10.3 billion in the prior week.

Municipal bond supply plunges to under $6 billion next week after seeing over $10 billion of new issues priced this week.

Rising interest rates have created a lot of early October red ink in the bond markets, says J.R. Rieger.

The municipal bond market returned from a three-day holiday weekend only to see action pick up where it left off last week — with yields heading higher.

The agreement ends an attempt by unsecured creditors to scuttle a restructuring of $4.1 billion bond debt.

Puerto Rico entities paid millions for rejected proposals, lost $1.1 billion on risky interest rate bets.

A hearing on the unsecured creditors' bid for standing was postponed to Friday to allow time for the talks.

If the unsecured creditors prevail in challenging the negotiated deal, the consensual restructuring of $4.1 billion may be thrown out.

The intermediate and long end has moved cheaper, creating an opportunity to add some yield to muni portfolios, says Triangle Park's J.R. Rieger.

Ahead of the FOMC monetary policy meeting and quarter end wrapup, a slim supply slate awaits muni buyers.

Bankruptcy Judge Laura Taylor Swain still has to rule on two other Unsecured Creditors Committee challenges.

The committee is holding a public hearing on its report on the causes of the debt crisis on Sept. 18 in San Juan.

Municipal bond traders will see a healthy new issue calendar hit the market next week.

The Unsecured Creditors Committee continued an effort to change the deal in a hearing on Thursday.

They are also trying to take over representation of the Puerto Rico authorities in Government Development Bank debt restructuring.

The unsecured creditors say that the deal treats the island’s government authorities in Title III bankruptcy unfairly.

The committee will review claims stemming from a 608-page report on the history of Puerto Rico's debt problem.

Since Puerto Rico formally filed the deal in court on Aug. 10, 13 parties have filed either court challenges or notices of intent to challenge the deal.

The deadline for voting is 5 p.m. on Sept. 12.