Munis

Jeffrey Scruggs, Managing Director and Head of Public Sector and Infrastructure Group at Goldman Sachs, sits down with Bond Buyer Executive Editor Lynne Funk on the state of the muni industry.

The growing federal debt level may pressure lawmakers to retract or reduce the tax-exemption for munis to generate revenue, some market participants argue.

It's a time of change, challenge and opportunity in the infrastructure and P3 space, Patrick Harder said.

The SEC won its case against Richard Ganci and Richard Tortora of Capital Markets Advisors over conflicts of interest present in their fee arrangement in connection to a $119 million offering for the City of Rochester, New York.

While Kansas' sales tax and revenue (STAR) bond program recorded its first default late last year, Bonner Springs is considering using it for a development that includes a Mattel toy-themed amusement park.

New York City Municipal Water Authority returns to the municipal primary after a $1.4 billion deal earlier this year.

The city will leverage its own GO bonds to finance the stadium.

The top two municipal bond insurers wrapped $7.132 billion in the first quarter of 2024, up from the $5.735 billion of deals in the first quarter of 2023, according to LSEG data.

"We withdrew the rating because we have determined we do not have sufficient information to maintain a forward-looking credit opinion on the city," S&P said.

Water systems will have five years to comply, although the Biden administration estimates only between 6% and 10% of systems will need to treat.

The pace of the issuance and the increase of refundings, surging 59.6% in the first quarter of 2024, have also led some firms to up their overall 2024 issuance projections.

The city gave no reason for the cancellation of its redemption plans or bond issuance, but reserved the right to call the 2010B BABs for redemption in the future.

Utah's Seven County Infrastructure Coalition has asked the U.S. Supreme Court to review an appeals court ruling that led to the loss of federal permits for a proposed bond-financed railway that would transport crude oil.

Goddard College became the latest small liberal arts school to close, citing long-term enrollment declines.

DASNY, Washington, Massachusetts, Jefferson County, Alabama, and the New Jersey Education Facilities Authority entered the top 10, with the last three issuers coming to market after not issuing any debt in the first quarter of 2023.

The deal comes amid market inflows and a dearth of high-yield supply, but demand will depend, as always, on the price, investors said.

Major headwinds for the muni market include climate change, growing federal debt, shrinkage of the workforce, the impact of remote work, cybersecurity attacks, and political polarization. And they are poised to be costly for states and municipalities.

Kaufman Hall & Associates, Piper Sandler and Montague DeRose & Associates moved into the top 10, while CSG Advisors, Estrada Hinojosa and RBC Capital Markets were bumped.

The state's transportation commission took action to end a comprehensive development agreement for a partially bond-financed toll lane project on State Highway 288.

Muni to UST ratios also continue to rise across the curve, inching closer to more normal averages.