Public finance

More than two dozen issuers have announced plans to refund their BABs this year, despite objections from investors.

The steady demand for municipal bonds in high-risk areas underscores the complex relationship between climate change and financial markets.

Signature Bank owned nearly $15 billion of mortgages across four of New York's five boroughs, making it the largest lender to rent-regulated housing in the city.

Mayor Brandon Johnson and Chicago's finance team talked up the Windy City's economy and talked up bond sale plans at an event for municipal bond investors.

Several weeks of elevated supply should theoretically be "weighing more on performance, but the market is now just ahead of its largest reinvestment season, which so far in 2024 has become even more pronounced, with an additional $19.5 billion scheduled for call/redemption between [June 1 and August 30]," said Matt Fabian, a partner at Municipal Market Analytics.

A professional basketball arena costing at least $900 million moved forward in Oklahoma City with the city council's approval of a development agreement.

CPS Energy, which provides electricity and natural gas in the San Antonio area, has a $1.05 billion revenue bond issue pricing in early June.

Fitch said Illinois has to resolve questions on Tier 2 pension benefits, and fixing Tier 2's failure to meet IRS safe harbor provisions would be credit neutral.

A strong project pipeline has P3 advocates hopeful for the future, despite some lackluster recent numbers.

Fitch raised its rating on about $260 million of municipal bonds, backed by payments-in-lieu-of-taxes, from C — the lowest category before default — to CC.

The debt was approved for Greensboro and Raleigh.

"While we acknowledge that the market tone is weaker [Monday], we are generally constructive regarding valuations and expect this week's supply to be absorbed fairly well after last week's giveback of the richening witnessed over prior weeks," said Vikram Rai, head of municipal markets strategy at Wells Fargo.

A strong tax collection season combined with compromise to seal the deal in a special session.

Recipients included Marjorie Henning, retired deputy comptroller for public finance for the New York City Comptroller's office; Albert Simons, retired partner at Orrick, Herrington & Sutcliffe; and New York City Budget Director Jacques Jiha. 

"The industry is built on relationships, and it's powered by technology," said Josh Rosenblum, head of algorithmic trading at Brownstone.

The $684 million turnpike deal is one of a spate of recent forward delivery deals driven by interest rate uncertainties. 

There are nearly 30 new-issues over $100 million on tap across the credit spectrum, led by the week's largest negotiated deal from Harris County, Texas, with $950 million of toll road first lien revenue and refunding bonds. The competitive calendar ticks up with several high-grade names.

The number of rural hospitals in the red jumped by 7% in 2023. A Senate Finance Committee discussed aid to help them stay afloat.

Possible solutions include managed lanes, EV mileage fees, and higher registration fees.

"The Fed is going to have to pivot — not on the basis of inflation numbers, but the basis of the real economy," Mohamed El-Erian said.