News and Information from Bond Buyer

With Chicago-area transit's fiscal cliff looming, the area's transit agencies are searching for revenue fixes and prepping for two key milestones this fall.

The rating agency cited the MTA's congestion pricing program, ridership recovery, healthy liquidity levels, and continued state support for the higher rating.

"The combination of stronger core and softer headline readings has left some traders struggling for direction," said Daniela Sabin Hathorn, senior market analyst at Capital.com. "There is a reason to be both bullish and bearish depending on which CPI reading you wish to focus on."

Changes to the federal tax code affect how states manage their budgets depending on how or if the state tax codes conform to the new rules.

A flagship program under the Infrastructure Investment and Jobs Act, the EV charging station initiative was slow to take off despite $5 billion of federal funds.

The fiscal 2026 budget would increase police and fire funding by $63.1 million as the city works to comply with a voter-approved public safety spending mandate.

A flow of public dollars to private schools has raised credit concerns about public schools and spurred litigation in Southwest states.

Citing a "meaningful improvement in the state's balance sheet," S&P Global Ratings Monday upgraded New Jersey to A-plus from A.

Returns for the month currently stand at 0.64%, which have "pushed muni returns back into the green with year-to-date returns of 0.09%," said Jason Wong, vice president of municipals at AmeriVet Securities.

The largest investors in the Brightline Florida train have negotiated new terms ahead of an Aug. 13 repayment deadline.

The Virginia Port Authority will sell bonds to finance upfront rent payments for the privately owned Virginia International Gateway.

The University of California is slated to price $1.5 billion in revenue bonds next week even as it battles Trump administration threats to research funding.

Federal Reserve Vice Chair for Supervision Michelle Bowman said she foresees three interest rate cuts for this year, a view bolstered by the latest employment data.

The rating agency cited stong debt service coverage and modest leverage.

Both sides of the muni market would be affected by new tax schemes being weighed by states with growing populations and dwindling revenues, according to analysts.

Six years after opening, the mall has higher sales, more attractions, and a lower property value assessment.

Issuance for the week of Aug. 11 remains elevated at an estimated at $10.713 billion, with $8.857 billion of negotiated deals and $1.857 billion of competitive deals on tap, according to LSEG.

"Nothing could delay a restructuring or a consensual deal [more] than the existing board was doing," said Assured Guaranty CEO Dominic Frederico of the Trump administration's removal of Puerto Rico oversight board members.

An Emerson College poll showed Lt. Gov. Eleni Kounalakis in seventh place in the crowded governor's race as she made the announcement Friday.

Generous federal support is offset by a small and volatile economy, the agency said.

Hospital acquisitions, expansions and the anticipation of federal policy changes has increased bond issuance from the California Health Facilities Financing Authority.

Ninety percent of FINRA's operating expenses are driven by compensation and technology costs.

While UST yields "consolidate" following Friday's massive rally after the July jobs report, muni yields remain resilient, according to Kim Olsan, senior fixed income portfolio manager at NewSquare Capital.

The $28,800 fine pertaining to violations of Municipal Securities Rulemaking Board rules was part of a $75,000 total fine imposed by FINRA.

The Local Government Commission approved issuance of notes that will be taken out gradually in the next few years.

Taylor Raymond has joined Norton Rose Fulbright as a senior counsel in its Austin and Dallas offices, according to the law firm.

Provisions of the One Big Beautiful Bill Act are beginning to take effect as the FHFA has doubled the cap on Low Income Housing Tax Credits, which should boost the issuance of private activity bonds.

The measure would lower the percentage increase in property tax revenue larger cities and counties can tap for operations without seeking voter approval.

Florida is poised to reap the rewards of spaceport financing legislation, even if some headwinds remain.

This year's portfolio growth will save the city $2.18 billion over the next five years, Comptroller Brad Lander said.

The municipal bond market is "doing pretty good for the moment," said Jeff Timlin, a managing partner at Sage Advisory.

The risk Brightline Florida poses to the rest of the high-yield market may manifest in fund flows, investors said.

The spaceport PAB statute was crafted in a way that's likely to appeal to the tax-exempt bond market. Nixon Peabody's Johnny Hutchinson said.

A judge approved an injunction requested by 20 states to temporarily halt the Federal Emergency Management Agency from diverting money from a disaster preparedness program.

Mayors and city leaders are using a combination of bond financing and public private partnerships to build and preserve affordable housing while working with a patchwork of regulations and facing opposition.

Officials are considering selling more voter-approved bonds for the stalled project, which could be jumpstarted with a phased-in construction approach.

St. Paul, Minnesota, is recovering from a cyber attack that overwhelmed the city's defenses ahead of its Aug. 19 bond deal close.

Analysts unsure about the impact of the firings on bondholders.

Over the past three trading sessions, MMD yields have been bumped nine to 12 basis points, while UST yields have fallen over 20 basis points on the front of the curve.

Some bondholders have retained legal counsel while others are in the dark about the company's plans.

City council approval of a five-part bond proposition for the Nov. 4 ballot comes as Denver faces a two-year, $250 million budget shortfall.

In this panel from The Bond Buyer's July 31 Virtual Summit, "The Shifting Muni Buy-Side," experts explore how volatility, tariffs, and reduced federal support are transforming municipal credit and attracting new forms of private capital.

Recent years' credit quality was "akin to a sugar rush," one investor said. Now we're seeing "fiscal normalization," an analyst suspects.

The state faces a $1.2 billion revenue hit in fiscal 2026 , as well as future spending pressures, from President Trump's One Big Beautiful Bill.

"If the narrative takes hold that the Fed is behind the eight ball and will need to cut rates several times in the coming months to catch up to the realities of a weaker economy, we expect muni yields will drift lower alongside treasuries," Birch Creek strategists said.

Sequestration on direct-pay bonds kicks in Oct. 1 without a fresh funding bill.

The plan being floated by California Gov. Gavin Newsom would nearly double the $21 billion fund created to protect the state's investor-owned utilities from outsized wildfire claims.

The council voted to preliminarily approve a $3.7 billion deal that will return an NFL team to play games inside the city limits while committing over $1 billion in taxpayer money.

Illinois Gov. JB Pritzker on Friday signed pension legislation that will put Chicago on the hook for an additional $60 million in its fiscal 2026 budget.

The municipal market has gone through several volatile years and the first half of 2025 continues to bring shifts to the landscape.

While high-yield out performed municipal investment grades in 2024,

The tremendous growth of separately managed accounts and exchange traded funds in the municipal market has been spurred on by lower fees,

The health network has struck up a partnership with the Dana-Farber Cancer Institute and is selling debt to finance the related infrastructure in Boston. 

The Federal Reserve governor's term was set to expire in January and President Donald Trump has made it clear that she would not be reappointed. The vacancy will give Trump an opportunity to appoint someone new to the central bank's board.

Municipal yields fell four to seven basis points, depending on the curve, while UST yields rallied nine to 30 basis points, with the largest gains on the front end.

Legislation that would put a tighter limit on property tax increases for larger cities and counties advanced out of a Senate committee on Friday.

Moody's cited continued liquidity improvements in the ratings lift for the northern California clean energy aggregator.

The federal government didn't have enough influence in the resulting haircuts to the COFINA bondholders for it to be liable for their losses, the court said.

This is the fourth consecutive month where issuance has topped $50 billion.

Amid higher ed sector headwinds, financially challenged colleges and universities have options, although the choices may be difficult, Orrick attorneys write.

Analysts say the outcome of the special session called by Gov. Tina Kotek to avert layoffs and close a transportation funding gap could affect ratings.

Tax-exempt munis have underperformed year-to-date, said David Hammer, a managing director and portfolio manager at PIMCO.

Fitch said the train line's ridership and revenue ramp-up continue to lag projections.

"We're always happy to have these conversations," Sanchez said during a virtual conference co-hosted by XBRL US and the University of Denver.

The Senate Banking Committee has advanced the first bipartisan housing legislation in more than a decade with loosened restrictions on housing credits and housing bonds.

The top two municipal bond insurers wrapped $22.121 billion in 1H 2025, up from $19.4 billion in 1H 2024, the data shows.

The city has promised to contribute $625 million to the stadium project. The team, owned by billionaire Shahid Khan, is to come up with $625 million of its own.

The FOMC held rates steady at the conclusion of its meeting Wednesday and offered no hints regarding a September move.

The House Transportation and Infrastructure Committee has rolled out bipartisan legislation designed to depoliticize FEMA and move the agency towards formula-based grants, a win for counties.

Oregon Gov. Tina Kotek signed the legislation expected to raise $40 million annually.

Vivian Altman, Nancy Feldman, Daniel Hartman and JoLinda L. Herring slated to serve four-year terms starting Oct. 1.

Lincoln's City Council unanimously passed three ordinances on Monday paving the way for the bond-financed construction of a new central public library building.

The muni market has "cheapened and steepened," which is a great opportunity for people still on the sidelines to get into the market again, said Jennifer Johnston, director of municipal bonds research at Franklin Templeton.

The Senate Committee on Appropriations released its version of the Transportation Housing and Urban Development and Related Agencies Act which contains more money for the public transit than the House version.

The agency cited the permanent raise to the rum tax cover for the improved outlook.

School districts are facing many challenges, including less federal funding, increased competition, declining enrollment and inflating costs.

The city council signed off on an $810 million debt sale, while it considers asking voters for a property tax rate increase this year to address budget gaps.

An investor presentation highlights industry conferences and consulting services that "have made the CIA the 'think tank' of the food service industry."

The asset class got a "much-needed boost" from inflows into muni mutual funds last week, said Birch Creek strategists.

The port, which operates Seattle-Tacoma International Airport, received a Moody's Ratings upgrade ahead of a $761 million revenue bond deal slated for next week.

Although the Federal Reserve is not expected to cut rates at this meeting, the market is closely watching for signs of a September easing and how the divide among officials plays out.

The cuts to Medicaid enacted by Republicans in Washington have such enormous negative ramifications for New York State's hospitals, government and patients.

The funds have net assets of around $187 million.

Issuance for the week of July 28 is estimated at $11.035 billion, with $9.018 billion of negotiated deals and $2.017 billion of competitive deals on tap, according to LSEG.

There have been critics of SRO authority since they started regulating the financial industry nearly a century ago, but their ideas have yet to find a political moment so suited to them.

Kostas Poulakidas has joined Greenberg Traurig's Chicago office. He builds the firm's public finance and infrastructure and government law and policy practices.

Damage claims from the Eaton wildfire could wipe out the $21 billion fund created to protect utilities and their customers when an investor-owned utility's equipment is deemed responsible.

Investors are watching an Aug. 13 refinancing on $985 million of bonds for proposed commuter line projects with southern Florida counties.

The Washington D.C. City Council Chairman and the CFO are tweaking the tax and financing terms of a $3.7 billion proposal that will return an NFL football team to the city by redeveloping the RFK Stadium site, just east of Capitol Hill.

The top five featured in the ranking handled deals totalling more than $84 billion in par value.

The airport, also selling $412.8 million of new money, will join a bevy of issuers who have deployed a tender offer in the hope of realizing refunding savings.

Investors added $571.5 million from municipal bond mutual funds in the week ended Wednesday, following $224.6 million of outflows the prior week, according to LSEG Lipper data.

Port Freeport's decision to go property tax-free resulted in a revenue bond rating downgrade from S&P and raised disclosure questions.

The MSRB Board also elected PRAG's Wendell Gaertner as vice-chair and approved a budget and rate card.

The fund's sell-off in June shows the challenges of accurate pricing in the high-yield muni market.

The Trump administration has denied Maryland's request for Federal Emergency Management Agency funding to aid communities on the western side of the state who were flooded out in May.

Larger dealer networks lead to lower markups, but smaller networks show evidence of potential collusion and market manipulation, the paper said.

Year-to-date volume stands at $310.166 billion, up 17.4% from $264.151 billion at the same time last year, prompting several firms to revisit their supply projections for the year.

The toll revenue bonds, subject to federal alternative minimum tax, will be issued through the Wisconsin-based Public Finance Authority.

U.S. District Judge Laura Taylor Swain gave no indication at the hearing as to how she was leaning and said some issues might not be able to be resolved as a matter of law.

Longer-term munis have become more attractive, said Cooper Howard, a fixed income strategist at Charles Schwab.

The effects of the One Big Beautiful Bill have yet to make a dent in state and local budgets as market experts and academics look into the future with concern.

It's among the more unconventional ideas being considered by public agencies facing large deferred maintenance backlogs.

An academic paper presented at the Brookings Institute's annual conference found that future wildfire risks are already having economically significant impacts on financial markets, municipal borrowing costs and vulnerable communities.

A new study indicates that the transition from coal to natural gas is resulting in deteriorating fiscal health in some communities and increases municipal bond yields.

A 2024 Illinois law changing sales tax distributions has ramifications for the fiscal cliff facing Chicago-area public transit agencies.

Why more issuers are opting for the tender offer. San Francisco PUC's Nikolai Sklaroff lays it out for Bond Buyer Senior Infrastructure Reporter Caitlin Devitt.

There is a buyer base that is a little bit "skeptical" of longer maturities, but it's more of a retail response, said Adam Congdon, a director at Payden & Rygel.

While the cost of small trades is higher than institutional trades across all fixed-income markets, the gap is more pronounced in the municipal bond market.

The Rhode Island Infrastructure Bank has issued a billion dollars of debt to promote clean water. 

The $719.5 million of general airport revenue bonds will help finance an ongoing multi-billion-dollar capital improvement plan.

The Illinois Municipal Electric Agency agreed with 29 of its 32 members on new contracts that last until 2055, but the holdouts include two large customers.

The legislature, which returns to respond to recent floods, could also take up bills to curb local property taxes, including bills aimed at bond issuance.

The primary market saw "decent subscriptions" last week, but the entire primary calendar came at "healthy concessions to where evals had been marked on existing bonds," Birch Creek strategists said.

The county comes to market on the strength of its recovery, according to the county's financial advisor.

First Southern LLC failed to timely and accurately report on trades executed for an affiliated hedge fund, FINRA said.

The bonds, scheduled to price next month, will have JPMorgan as senior manager.

The District of Columbia Water and Sewer Authority is selling $216.5 million of revenue refunding bonds and financing the Clean Rivers Project, a massive effort designed to reduce combined sewer overflows into the local waterways.

Stephanie Henning will establish a public finance office in Dallas, the bank's third in the state.

A two-year process and a new financing vehicle were needed for the New York Power Authority to price the first prepay energy deal in the state. 

The week was a long-awaited reckoning with record supply, said Kim Olsan, senior fixed income portfolio manager at NewSquare Capital.

The meeting will be held on July 23 and 24.

Randall "Randy" Miller, Chad Miller and Jeffrey De Laveaga were charged by the SEC with creating false documents that were provided to investors in two municipal bond offerings.

The National League of Cities rolled out its annual report showcasing the challenges facing mayors, including the end of BIL funding and a steady diet of uncertainty about the flow of future federal dollars.

The House cuts are less severe than those proposed in President Donald Trump's 2026 budget.

The top suite of firms oversaw deals amounting to more than $139 billion par value across 58% of the market.

Schools and governments turn to bonds to cover payouts in the wake of a California law that temporarily lifted the statute of limitations on sex abuse claims.

Nederland, Colorado, has a plan to issue revenue bonds to finance its purchase of a ski resort that would be turned into a year-round community asset.

Illinois Gov. JB Pritzker led governors from 18 states in demanding the Trump administration release $6.8 billion in education funding.

Munis are "under pressure as elevated primary supply collides with lackluster seasonal reinvestment flows, leaving dealers heavy and buyers selective," said James Pruskowski, an investor and market strategist.

The Washington, D.C., City Council missed a deadline to approve a plan to build a $3.7 billion NFL stadium as supporters emerge touting the financial structure of the deal.

Streamlining federal permitting and partnering with state DOTs are among the priorities for the next surface transportation bill.

"It's time for this boondoggle to die," said Transportation Secretary Sean Duffy.

Atlanta's airport and the rapid transit system have the biggest anticipated capital plans over the next five years.

Two New York members of Congress called them "vulture funds" trying to get "blood out of a turnip" at the expense of Puerto Rico electricity customers.

As the market continues to contend with the surge in issuance, investors still have a significant amount of cash that can be put to work, said Jeremy Holtz, a portfolio manager at Income Research + Management.

SROs "are now being guided by individuals who lack a deep real-world understanding of the markets they oversee," the trade association said in a letter to the House Financial Services Committee.

Record contributions from public employers made up for below-expectation investment returns, according to a report published by the the Equable Institute.

Hays County will appeal a June 23 court ruling that voided a successful GO bond election while it explores issuing alternative debt to fund road projects.

"Most states do not expect to be able to keep key roads and bridges to a state of good repair," said David Draine, principal officer, public sector, retirement systems for the Pew Charitable Trusts. 

Once considered as a promising prospect for investors, "green" bonds have been plagued by defaults, a concern for those who study the underlying technologies.

A 2024 Illinois law loosened school bond restrictions, allowing districts to authorize some debt without an election. That caused a backlash in one district.

The top 10 underwriters for the first half of the year brought in more than $203 billion across nearly 2,000 issues.

As always, economists had disparate interpretations of the consumer price index, with none expecting a July rate cut. And tariff questions remain unanswered.

Prices for some bonds issued for Florida's express train have fallen sharply since Friday.

Puerto Rico's disputes with New Fortress Energy, the parent of the island's power plant operator, Genera PR, could spread to PREPA.

The city council voted unanimously to hold a special election on an 11-part GO bond proposition, which will be the largest in the city's history.

With big state incentives and tariff protection, a United Arab Emirates-based aluminum producer has pledged to build the first new U.S. smelter in decades.

The hires "will help us further deepen our relationships," said the firm's head of public finance.

"The muni market seemed to ignore Treasuries [last] week, marching to its own beat," said Birch Creek strategists.

Executive Director Gene Seroka said the port's downstream prospects are unclear as it deals with the "tariff whipsaw effect" from the Trump administration.

"We supported the approved rule change and are extremely disappointed that the MSRB is now proposing to halt the progress it had been making toward full and complete transparency in the municipal securities market," Dimensional Fund Advisors officials said in a letter.

The House Appropriations Committee kicks things off with markups of three infrastructure-related funding bills this week, including transportation.

Tim Ruby has joined Wells Fargo as its healthcare, higher education and not-for-profit division executive. He will be based in Chicago.