Public finance

An improving tone was apparent in the municipal market midweek — after a topsy-turvy ride last week when the market saw a close to 50-basis point adjustment to the front end of the triple-A municipal yield curve.

Earlier in the pandemic, bond values showed a greater divergence among local government issuers tracked, but that has reverted to pre-pandemic levels, although work-from-home and other uncertainties still take a toll.

While the FAFAA backed the board's discovery timeline, bondholders argue the board is trying to "run out the clock."

The San Francisco Bay Area Rapid Transit District relied on fare revenue before the pandemic. Ridership has lagged since COVID, and so have revenues.

It says the plan of adjustment can treat bonds of National Public Finance Guarantee differently and let National vote in a different class.

Inflows continued with the Investment Company Institute reporting investors added $931 million to mutual funds in the week ending Feb. 15, after $2.194 billion of inflows the previous week.

The ruling striking down Rhode Island's tolling program constrains states' efforts to solve complex infrastructure problems, the state says.

State and local governments across the country are making increased efforts to put money forward for the purpose of reparations.

"The close to 50 bp adjustment to the front end of the AAA municipal curve, taken at face value, appears to be a huge step toward pricing normalization for tax-exempts," said Eric Kazatsky, head of municipal strategy at Bloomberg Intelligence.

A bill introduced by Sen. Dave Min would prohibit banks that invest in gunmaking from working on any aspect of state public finances, including bond sales.

The proposed plan's superior treatment of National Public Finance Guarantee-insured bonds is discriminatory and thus illegal, they allege.

Public power agencies argued that subsidies for Build America Bonds should be exempt from the federal budget sequestration process.

A panel that includes public finance professionals is tasked with finding fiscal and operational solutions for the transit systems, which face a fiscal cliff.

New York State Comptroller Thomas DiNapoli talks with Chip Barnett about his proposal for an amendment to the state constitution to limit backdoor borrowing by agencies and give voters a bigger say on bond issuance. (25 minutes)

A controversial $5 billion bond-financed extension project spurred several bills that would alter the Oklahoma Turnpike Authority's debt and other practices.

The taxable bonds, which finally received state approval, will be offered with maturities in 2033 and 2039.

Investors will be greeted Monday with a new-issue calendar estimated at $3.603 billion.

"As we spoke with our underwriting partners and our municipal advisors, given [market] volatility, we shortened that retail order period to one day," says OMB's David Womack.

The largest of the three tranches is the $75 million Series 79-A, which are tax-exempt and carry a social bonds designation not verified by an outside party.

Gov. Greg Abbott used his State of the State address to fast track his priorities for the legislative session and drop a hint about an upcoming $100 billion transportation infrastructure plan.