Public finance

Pittsburgh-based Robert Morris University was downgraded by Moody's Ratings. The private university is part of a growing list of smaller higher education institutions, particularly in the Northeast, that are facing increasing financial pressures as the pool of potential students shrinks.  

Vivian Altman, Head of Public Finance at Janney, sits down with Bond Buyer Executive Editor Lynne Funk to discuss the state of the muni market, how the new-issue market is faring and where risks and opportunities exist in the space.

High-yield and taxable munis continue to outperform, supply grows but concentrates in larger deals led by $3 billion of state personal income tax revenue bonds from the Dormitory Authority of the State of New York next week.

"Cry me a river, Rep. John Garamendi, D-Calif., told officials testifying about grant funding problems in the infrastructure law. "You guys have never had it so good."

Sam Graves' term leading the Transportation and Infrastructure Committee is up but he is looking to stay on.

According to FINRA, the mispricing resulted in customer harm amounting to $44,927.83, on top of the $90,000 fine.

One investor is offloading the debt, while another sees an opportunity.

Several investors in a challenge to a University of California Regents Build America Bonds redemption "may give issuers additional reason for pause when vetting similar refundings," J.P. Morgan strategists said.

The market is being led more by supply and demand than ratios or even rates. As ratios sit at extremely tight levels, there are buyers engaging at these levels, but large amounts of cash continue to sit on the sidelines.

Costanzo is only the fourth woman to lead a municipal banking division. Huntington has hired Citi's entire Midwest public finance banking group, and Costanzo said the firm intends to further grow its footprint in the municipal space.

Detroit, which has several climate-friendly projects in the pipeline, is seeking a tax advisor to help navigate snag tax credits in the Inflation Reduction Act.

The Houston City Council was unable to vote on initial financing for a $2.55 billion terminal renovation project at George Bush Intercontinental Airport without certification by the city controller.

The Chapter 11 case for Harvest Gold Silica follows two other bankruptcy filings over the last year by entities that sold bonds through the Arizona Industrial Development Authority.

"Our firm is committed to expanding in regions and sectors with robust muni issuances and we view the K-14 market in California to be a great intersection of such," said Gary Hall, SWS president of infrastructure and public finance.

The nation's capital is a hub of potential sports facility financing.

The state's February general revenue collections came in $30.62 million below official estimates. but total collections for fiscal 2024 are $428.1 million ahead of forecasts.

Cabrera Capital Markets is welcoming three new public finance hires who are joining the firm from UBS: Shawn Dralle, Shawnell Holman and Chris Bergstrom.

Loop Capital Markets is adding four seasoned public finance professionals from Citi and UBS: John Malpiede, John Giammarino, Alain Garcia and Candace Kelly.

It was a good day for munis with larger deals clearing the primary and secondary trading showing a more constructive tone with triple-A yields falling a few basis points amid a stronger session for all markets.

U of I's plans to issue debt ahead of the expiration of a non-binding agreement in May were challenged by a state high court decision to hear an appeal and an Idaho House of Representatives resolution.