Junk bonds

The Water and Power Authority got good financial news from the U.S. Federal Emergency Management Agency but bad financial news from a federal court in Puerto Rico.

Falling occupancy figures, staffing shortages, and rising labor costs have elevated the sector's risk, with Greenwich Investment Management's bankruptcy yet another example of how the sector requires thorough credit analysis.

The WAPA board of directors says it is looking for a replacement who would start on July 1, when Andrew Smith says he will depart.

The authority's CEO said it has no money for facilty maintenance.

The governor should have involved the legislature earlier in decision making on how to give the Water and Power Authority money to make a bond payment, lawmakers said.

The state of emergency will let the governor use the central government's rainy-day fund to provide money to WAPA that semi-autonomous agencies of his government owe the authority. WAPA will use the money to make payments to bondholders and other creditors starting Tuesday.

Congress has taken no significant action on bills that would stop the depletion of the United States Virgin Islands' government pension system for 21 months.

Citi's exit comes amid the larger trend of broker-dealers downsizing balance sheets, which can hurt secondary market liquidity, particularly in times of stress. Other market players are coming into the fold.

Governor says the money would be used to get through the slow winter revenue months.

The reserve should have enough to cover bond payments for a year, according to an observer.

Nuveen's marquee fund has seen the worst performance among the largest high-yield funds so far this year.

When set against high-profile public finance projects like American Dream and Legacy Cares, Florida's Brightline marks a rare success for investors.

Loss of aid could hurt the islands' economy, a local senator says.

CEO Andrew Smith says authority is taking steps toward settling its outstanding debt.

The money is to help AES-Puerto Rico continue to provide PREPA with electricity.

The electrical generator provides about 21% of the Puerto Rico Electric Power Authority's electricity and the default's impact on PREPA and PREPA's bankruptcy remain to be seen.

The Visitor Bureau says the number of tourists this fiscal year is likely to be 40% less than what had been predicted. Tourism is a large portion of Guam's economy.

The authority will borrow to pay off its debt at about 50 cents on the dollar.

Except for the riskiest sectors, high-yield credit fundamentals appear to be strong, but rising interest rates and fund outflows are dampening primary and secondary market activity.

A letter of credit would be used, in part, to help fund a settlement between WAPA and its fuel supplier Vitol.