Munis

Issuers in five Far West states increased their borrowing the first half of the year, while four saw sizable decreases.

The bonds, expected to be rated Aa2 by Moody's, will will be among the earliest general obligation bonds sold by Kentucky school districts since the state passed a law in April allowing such debt by school districts.

The region's municipal bond volume grew by 42.4%, outpacing the nationwide 32% increase in a first-half marked by gas prepay deals and Brightline's big sale.

Charter school bond issuance have leveled off as issuers consider labels and alternative structures.

The rating agency estimated the cost of college and university capital needs at $750 billion to $950 billion over the next decade.

Midwest bond sales ticked 1.8% higher by volume in the first half of 2024, to $34.377 billion as the region missed out on the big gains in volume nationwide.

Lawmakers could take a scalpel to certain bonds and sectors to penalize issuers for unrelated policies, like school vouchers or campus protests.

In this episode, Howard Cure, Director of Municipal Bond Research at Evercore Wealth Management, discusses the improving state of public pensions, the ongoing challenges faced by states like New Jersey and Illinois, and the risks associated with pension obligation bonds.

Issuers in the eight-state region sold $50.6 billion of bonds with Texas accounting for 65% of the volume.

Pent-up demand, dwindling federal aid and lower interest rates led to a 32% increase in municipal issuance in the first half of 2024.