Public finance

Factors such as financial disclosure schedules are one reason big bond deals from New York City and the state have to share tight space in the bond calendar.

Munis are entering a negative feedback loop, according to J.P. Morgan analysts led by Peter DeGroot.

"In a few years, Brightline may have to consider going through something like this again," warned one investor.

Ahead of a refinancing next week and a new money deal next month, Chicago's spreads have widened, suggesting the market may be pricing in a downgrade, analysts said.

Moody's Ratings said the downgrade "reflects a weakening of the county's financial position."

The veto means California won't have a new vehicle to fund large-scale infrastructure. Newsom also killed a bill to unwind pension reforms.

Muni yields are succumbing to a "domino effect," said Kim Olsan, portfolio manager at NewSquare Capital.

A three judge panel upheld a lower court rejection of the bondholders' suit against Puerto Rico's central government.

The selloff in munis this week is "against a backdrop of historic bid wanted in competition volume, continued rate volatility, tax-loss selling [and] unfavorable technicals," said J.P. Morgan strategists.

Strong rainy-day funds remain a key buffer, but states that rely on volatile revenues or face rising Medicaid, education and infrastructure costs may have less room to absorb the next shock, writes Market Intelligence analyst Jeff Lipton.

"We believe strongly in these sectors, and they are poised for even more growth," Bo Daniels, Loop Capital's head of public finance, said in a statement.

A cutback in federal funding for state revolving loans to water utilities is among the things pressuring water utilities in Florida.

The outlook revision to positive from stable is the second this year for the state after Moody's Ratings took similar action in May.

Muni yields have been slow to reprice Federal Reserve expectations, but on Wednesday, they caught up fast, said James Pruskowski, managing director at Hennion & Walsh.

Proposition 40 aims to raise $100 billion through a one-time tax on assets over $1 billion to offset federal Medicaid cuts.

Payson's $21.21 million taxable pledged revenue obligations issue comes amid a riskier environment for pension-related borrowings.

The Metropolitan Transportation Authority chair and CEO says changes are needed to state and federal laws and the MTA's financial structure.

The recent short-end correction stems from last week's Fed rate hike, said Ron Banaszek, co-head of public finance and lead underwriter at Blaylock Van.

The city's inability to get approval for bonds that would fund operating expenses has forced the mayor to propose deep budget cuts for the coming fiscal year.

A finance committee vote teed up a debate by the full Chicago City Council Wednesday on whether to require more aldermen votes for new borrowing.