Puerto Rico

Another big week lies in store for the municipal bond market, with a variety of big name issuers ready to sell bonds.

The PRIDCO deal would be the fifth restructuring proposed or consummated under the Puerto Rico Oversight, Management, and Economic Stability Act of 2016.

The agreement “would increase prices by up to 21%” and it’s “highly unlikely PREPA will be able to completely offset the legacy debt charges,” resulting in “considerably higher electricity rates for decades to come,” said the letter signed by four senators and 32 House members.

The Oversight Board called the deal to reduce cuts to retirees a "crucial step" toward restructuring $25 billion in bonds and loans.

The new bonds would offer about 25 basis points less in interest.

He said the board has been inaccurate in its financial predictions and that he wouldn’t participate in any cuts to pensioner benefits.

But size isn't everything as the value of the municipal bond market increased.

Rating criteria changes and a ruling in the Puerto Rico III case have undermined some investors' and analysts' confidence in revenue pledges.

Investors will see nearly $10 billion of weekly bond volume in a calendar composed of $6.4 billion of negotiated deals and $3.4 billion of competitive sales.

BofA Securities priced the county’s $700 million of tax and revenue anticipation notes.