Commercial banking

Daily report for May 09, 2025

Moody's Ratings cited low liquidity as a reason for the downgrade.

Federal threats to grants and the tax exemption continue to push universities to the bond market. This week, it was MIT, Yale, and Suffolk University's turn.

The recent firmness in the market has been "much appreciated," said Shannon Rinehart, senior portfolio manager of municipal debt at Columbia Threadneedle Investments.

The rating agency expects a decline in U.S. air passenger numbers this year due to a deceleration in U.S. economic growth, it said in a report this week. 

The Oversight Board will continue to "prepare for a more dire outcome but continue to hope for the best," said Chairman Arthur Gonzalez.

The Commercial Metals Company and the West Virginia Economic Development Authority took a chance by coming to market with a tax-exempt $150 million junk-rated private activity bond sale financing a scrap metal steel mill during uncertain times for the construction industry.

Micky Marshall is assistant vice president and regulatory counsel for the Independent Community Bankers of America.

The bonds have not reacted to the most recent negative ratings actions, although one buysider said that may soon change.

Dominic Piscopo, CPA, is the founder of Big 4 Transparency.com and host of the Big 4 Transparency Podcast.

Muni advocates are watching the SALT cap negotiations closely, as the outcome may be influence if other revenue raisers, like axing the muni tax exemption, come into play.

The third-most-populous Louisiana city is closing out a 2021 bond authorization, but has plenty left from a 2024 bond referendum.

The top five April bond financings totaled more than $8 billion.

Daily report for May 08, 2025

Shivani Deodhar is a governance and reporting assistant vice president with BNP Paribas.

The downgrade pushes $2.2 billion of private activity bonds issued for the passenger train startup though the Florida Development Finance Corp. to junk.

Charlotte will sell $330 million of bonds and Duke Health will offer $540 million.

Muni yields remain attractive, said Tom Kozlik, managing director, head of public policy and municipal strategy at HilltopSecurities.