News and Information from Bond Buyer

New Mexico has fallen from the ranks of Moody’s Investors Service Aaa-rated states due to shrinking reserves and falling revenues.

New York MTA’s derivatives program reduces budget risk through interest-rate and fuel-hedging strategies, said finance director Patrick McCoy.

Atlantic City Mayor Donald Guardian said he is optimistic that the city's turnaround efforts will be accepted and a state takeover averted.

Property developments around DART’s light rail stations are important factors in the strong North Texas economy.

The Treasury Department auctioned $34 billion of five-year notes, with a 1 1/4% coupon, a 1.303% high yield, a price of 99.744253.

In a sign of the challenges the federal board overseeing Puerto Rico’s debt workout may face, the island’s power authority’s deal to restructure more than $8.3 billion remains mired in litigation.

Rhode Island's pension system returned more than $45 million for September, state General Treasurer Seth Magaziner said.

The tax supporting a $38 million bond deal for a rural Alabama hospital faces a legal challenge, though supporters say a state constitutional amendment on the Nov. 8 ballot should cure the problem for Chilton County and other localities, including Jefferson County.

Alaska Gov. Bill Walker called off a planned $2.35 billion sale of pension obligation bonds citing a lack of legislative support.

Top-quality municipal bonds were mixed at mid-session, according to traders, as some of the biggest deals of the week hit the market.

The Treasury Department Wednesday auctioned $15 billion of two-year floating rate notes with a high discount margin of 0.170%, at a 0.170% spread, a price of par.

Indicator Last Report Forecast Actual New Home Sales Aug.: 575,000 Sept.: 600,000 Sept.: 593,000

Municipal bond traders await some of the biggest deals of the week on Wednesday as the bulk of the supply calendar gets set to hit the market.

Moody's Investors Service said it has downgraded the state of New Mexico's general obligation bonds to Aa1 from Aaa, affecting $327 million of outstanding debt.

Wednesday, October 26 Issuer St Description Amount

Wednesday, October 26 Issuer St Description Amount

Indicator Last Report Forecast Actual Consumer Confidence Sept.: 103.5 Oct.: 101.5 Oct.: 98.6

Oct. 26, 2016 Midwest: Plain/Insured GO Yield Curve* State Ratings One-Year Five-Year 10-Year 30-Year Illinois Baa2/BBB/BBB+ 1.51 2.92 3.7 4.49 Indiana Aaa/AAA/AA+ 0.71 1.18 1.84 2.66 Iowa Aaa/AAA/AAA 0.71 1.17 1.84 2.66 Michigan Aa1/AA-/AA 0.75 1.24 1.92 2.76 Minnesota Aa1/AA+/AAA 0.72 1.15 1.77 2.54 Missouri Aaa/AAA/AAA 0.71 1.12 1.73 2.55 Nebraska NR/AAA/NR 0.71 1.2 1.89 2.74 North Dakota Aa1/AA+/NR 0.75 1.24 1.92 2.74 Ohio Aa1/AA+/AA+ 0.73 1.2 1.87 2.7 South Dakota NR/AA+/AAA 0.73 1.2 1.92 2.76 Wisconsin Aa2/AA/AA 0.75 1.22 1.91 2.71

Week Of October 24 Issuer St Description Amount

10/25/2016 10/18/2016 State # Iss Amount ($000) # Iss Amount ($000) Chg in Amt ($000s) Illinois 24 $1,956,700 16 $273,205 $1,683,495 Indiana 18 204,380 17 226,995 -22,615 Iowa 11 81,015 9 268,970 -187,955 Michigan 6 330,555 10 444,865 -114,310 Minnesota 40 317,515 45 560,170 -242,655 Missouri 7 207,830 6 43,180 164,650 Nebraska 2 109,475 2 169,890 -60,415 North Dakota 2 71,110 1 43,970 27,140 Ohio 12 585,625 16 301,005 284,620 South Dakota 0 0 1 19,970 -19,970 Wisconsin 11 95,240 15 141,385 -46,145