Public finance

Concerns over the Texas city's future water supply after a desalination project was terminated, led to negative rating outlooks from Fitch and S&P.

Municipal water agencies are appealing to the Environmental Protection Agency about a slowdown in the Water Infrastructure Finance and Innovation Act loan program which along with bond sales, funds improvements to water and sewer infrastructure.

"Normalized supply, a supportive rate environment and favorable technicals propelled the municipal market to the best October performance [in decades]," said Robert J. Lind.

Attorneys for the Archdiocese said it is "inevitable" bondholders will be hit with a cramdown.

Meanwhile, the Brightline West train project has floated a possible debt exchange ahead of its own mandatory redemption later this month.

As climate and cybersecurity risks intensify, Jeff Lipton argues it's time for the legal community to lead a new era of municipal disclosure — tightening language, clarifying exposures, and ensuring investor confidence.

Next week's issuance is slated to be "substantial" — an estimated $13.1 billion — although that is expected to be met with "solid" November reinvestment capital, J.P. Morgan strategists said.

The rating agency expects the school to post an operating deficit this year.

City Manager Oliver Chi unveiled a plan to invest $60 million to change the city's current trajectory.

"Illinois is just pure mismanagement," Ryan Frost, managing director of the Reason Foundation's Pension Integrity Project, said.

Issuance year-to-date is $493.063 billion, up 9.3% from $451.079 billion over the same period. With issuance estimated at $13.118 billion in the first week of November, 2024's $500-plus billion record should fall within the next week or two.

The school system, which has an AA underlying bond rating from S&P, was targeted by the Texas Education Agency for a takeover based on academic performance.

Municipal Capital Markets Group and CSG Advisors were new entrants to the top 10, kicking Caine Mitter and Estrada Hinojosa into the top 15.

The Los Angeles Department of Water and Power will sell $977.6 million of water revenue bonds as it grapples with the impacts of January's devastating wildfire.

Technicals are supposed to become slightly more favorable into year-end, said Jeremy Holtz, a portfolio manager at Income Research + Management.

The city said it will take a wide range of measures to try to get through November and December without running out of money.

Chicago Public Schools went to market this week with nearly $1.1 billion of refunding bonds in the largest municipal transaction the district ever completed.

Overall, the top underwriters saw minor shuffling in the first three quarters and no new firms entered the top 10.

The bankruptcy judge suggested Jackson Hospital and Clinic may be closed if it doesn't propose a plan of adjustment before the end of the calendar year.