News and Information from Bond Buyer

A second budget reconciliation bill is moving closer to reality, creating a mixed bag of challenges and opportunities for the municipal bond market.

Financial mismanagement and apparent revenue diversion led to events of default for centers owned by and financed through the PFA, the bond trustee said.

Wells Fargo's Julie Barger called the investors a "who's who of buyers in the muni market" including mutual funds, ETFs, SMAs and insurance companies.

The legislature passed bills to cut personal income tax rates over time and limit increases on homestead property tax payments to the rate of inflation.

The Texas city is facing a potential level 1 emergency, indicating the water system is 180 days from supply not meeting demand.

Financial markets, including the muni market, priced in too much of a "sure thing, done deal" Wednesday morning, said Kyle Gerberding, director of trading, a portfolio manager and partner at Asset Preservation Advisors.

The state Supreme Court's decision did not address the 2022 law's governmental contract ban for businesses deemed to be "boycotting" the fossil fuel industry.

"We need private capital," the transportation secretary said.

"I would much rather invest in the muni, both in terms of default rates and in terms of the yield that you're getting off of those," said Travis Lower.

Wednesday's market rally is tied to President Donald Trump's announcement of the temporary ceasefire, which came about Tuesday night, an hour and a half before the president's 8 p.m. deadline, market participants said.

As Congress returns to Washington in the next few weeks thoughts will turn to a problematic reconciliation bill, a housing bill close to completion and a farm bill facing serious challenges.

Voters rejected a 3% hotel tax increase Tuesday in Springfield, Missouri. They had already rejected a similar measure in November.

"The steady tone talks to the underlying demand" for munis, NewSquare Capital's Kim Olsan said. "For the moment, munis are holding steady with a watchful approach.

Illinois curently plans $3.2 billion of bond sales in FY2027 under Gov. JB Pritzker's executive budget, the Commission on Government Forecasting and Accountability said, adding additional authorization requests are expected.

The city and United Airlines are navigating geopolitical volatility looking for an opportunity to sell the debt.

The California Municipal Finance Authority will issue $742 million in tax-exempt debt for the San Francisco Municipal Transportation Agency's first P3.

New Hampshire will not include a refunding of 2016 GOs in its annual deal. 

Market Intelligence analyst Jeff Lipton details some tools he finds useful to manage risk exposure, establish market trends and identify opportunities.

The state's latest water plan outlines $174 billion of capital water needs over the next 50 years. "The era of cheaper water is over," said one state water official.

The yield curve adjusted lower every day last week, drawing strong inquiries to dealers, "especially in the 10-to-15-year space that had been hit hardest in March," Birch Creek Capital analysts noted in their weekly market commentary.