Public finance

Six weeks after pulling its last bond sale, Illinois plans a full court press with investors and will drop a bidding feature that had dampened the interest of some broker-dealers as it prepares to competitively sell $800 million of debt.

Table as of: 03/12/2013 13:56 PM Invisible Supply Issuer and purpose Amount

ARKANSAS

ALABAMA

The Chicago City Council will take up ordinances as soon as Wednesday authorizing up to $1.65 billion of O'Hare International Airport debt that will raise new money for the airport's $8 billion expansion.

Changes to the tax code capping the tax exemption of municipal bonds would increase borrowing costs for public power providers of all sizes, according to a new report from the American Public Power Association.

Fewer governors have been focusing on pension reform in their state of the state addresses this year, but most who propose reform follow through, according to Loop Capital Markets.

Many prominent, heavily leveraged municipal bond closed-end funds saw sharp declines to their NAVs late last week thanks to seasonal factors, such as lighter cash flows, heavier supply and lower demand, mixed in with the approaching tax season.

Three Standard and Poor's analysts speaking in the wake of federal sequestration cuts said that public power utilities, water and sewer entities, and the transportation sector should all remain fairly stable for the next year despite a number of pressures.

ILLINOIS

INDIANA

To no surprise in the bond markets, teetering Harrisburg, Pa., will miss $5.2 million worth of payments on general obligation bonds and notes due March 15.

Florida is seeking qualified firms interested in a public-private partnership to build a $2.1B managed-lanes project on Interstate 4 through Orange and Seminole counties.

The Transportation Infrastructure Finance and Innovation Act has been touted by many as a crucial funding source for major projects, but most states have never used the program and say it has little value for them.

U.S. banks enjoyed more exposure to municipal bonds at the end of 2012 fueled by increased profitability and revenues looking for a home in the face of declining commercial loan generation and the imposition of new federal regulations, according to municipal experts.

MICHIGAN

ALABAMA

A $2.5 billion California general obligation financing will thunder into the municipal market at a time when volume is expected to inch up over $8 billion in what is one of the largest one-week supply scenarios so far this year -- however the extra supply may force underwriters to bump yields in order to get investors' attention on the heels of last Thursday and Friday's weakness, according to one market expert.

Barclays is warning that if a Build America Bond subsidy payment is reduced under sequestration and this triggers an extraordinary redemption provision, the issuer may be able to call those BABs anytime, even years later when market changes make the call affordable.

Two northern Virginian House Democrats have introduced legislation that would authorize the study of an expansion of the Washington Metrorail deeper into the commonwealth.