Public finance

Whether PREPA can pay the administrative expense claim doesn't affect its validity, the bond parties said.

However, the new-issue calendar may not be "absorbed as easily, given valuations have grown less compelling after this week's performance," said Birch Creek strategists.

Armed with higher ratings since its last sale four years ago, the city is set to return to the market with a bang. 

Chicago is facing myriad headwinds. But its GO bond sale last week was oversubscribed and city officials said that allowed them to lower yields in repricing.

The top five May bond financings totaled more than $5 billion.

The nonfarm payrolls report shows the economy is "hanging in there," though it is slowing, said Jeff MacDonald of Fiduciary Trust International.

Observers say a bankruptcy by Genera PR could complicate the PREPA bankruptcy.

Cities and states have until Aug. 1 to apply for the funds.

The upshot of the report by Payden & Rygel's Travis McGahey is that the risk of severe credit deterioration and bond defaults remains low.

Notre Dame College in Ohio faces legal action on at least three fronts after defaulting on bond debt and a swap agreement and allegedly misusing donor funds.