Investments

With $300 million of term bonds due in 2051 underperforming in secondary market trading, Kansas officials are eyeing a surplus revenue funded buyback plan.

Total volume in 2022 was at $389.094 billion in 9,123 deals, down 19.5% from the $483.358 billion in 13,130 deals in 2021, according to Refinitiv data.

The two main insurers, Assured Guaranty Municipal Corp. and Build America Mutual, accounted for $28.823 billion of deals in 2022 compared to $37.193 billion of in 2021.

Healthy coffers, revenue growth, and strong market technicals led to declining need for short-term borrowing among municipalities last year.

The transportation bond sector may see the greatest growth in 2023 as a result of the infrastructure act, one analyst said.

"This peculiar shape of the muni yield curve has created a conundrum for investors, as all high-quality municipal bonds, with the possible exception of the long end, have become quite rich," Barclays strategists said.

Low income residents of Puerto Rico won't be charged the proposed monthly fees the Oversight Board said.

Plaintiffs who challenged the legislation plan to ask the Illinois Supreme Court to hear the case. Meanwhile, the consolidation process has moved forward and the majority of funds have transferred their assets.

An initial toll corridor would require $8.5 billion in upgrades, which would be financed by a new bond credit under a plan under consideration by Michigan lawmakers.

The rainy-day fund is currently at $904 million, but Gov. Joseph Lombardo's budget targets $1.6 billion in reserve by the end of the biennium.

"The large taxable refunding or combined transactions were accomplished earlier in the year when rates were relatively low," says John Hallacy.

Citi was barred from underwriting government bonds in Texas under a state law prohibiting contracts with companies that "discriminate" against the firearms industry.

Inflows returned as Lipper reported $775.006 million was added to municipal bond mutual funds in the week ended Wednesday after $361.649 million of outflows the week prior.

The issue is important to lawmakers in high-tax states, and is also important to municipal issuers in those places who have said the cap infringes on their fiancial sovereignty.

"I think ESG is here to stay in our market. I think it's a natural fit with the types of infrastructure that our market finances," said MSRB CEO Mark Kim.

A California conduit will price private activity bonds to replace the intakes for a San Diego County water desalination plant.

Public school districts faced $1.38 billion in spending cuts next month due to a constitutional cap on expenditures.

New legislation on the high priority is on its way.

Although there is some volatility in the municipal market, the landscape is in good shape, according to Cooper Howard, fixed income strategist at Charles Schwab.

Photos from The Bond Buyer's annual National Outlook Conference.