Public finance

Some observers of Puerto Rico politics are concerned its government continues to avoid fiscal responsibility, ignoring past mistakes that led to the bankruptcy.

Local police funds challenging the suburban and downstate police and firefighter pension fund consolidation appealed a court decision that upheld it.

The seasonal factors of a supply and demand mismatch, reinvestment needs and strong credit fundamentals, have opened a window of opportunity.

High-yield raked in the majority of the flows helped by Nuveen reopening two of its high-yield funds to new investors. Participants remain cautious as macroeconomic effects still hang over the market.

After next fiscal year, the governor expects both revenues and spending to increase.

Turner & Townsend aims to double its North American growth by 2025 as the Infrastructure Investment and Jobs Act is rolled out.

Municipals posted gains for the first time in 2022 in May, outperforming U.S. Treasuries on the month. The Bloomberg Muni Index posted a 1.49% return in May bringing losses down to 7.47% year to date.

Even as the U.S. deal pipeline builds, public pension funds still need to look outside the country when they want to invest in infrastructure.

Proceeds from the sale of the $406 million of general obligation bonds will fund infrastructure projects including roads, parks and recreational facilities.

June redemptions will be the highest of the year at $50.6 billion. New-issue supply — 30-day visible is currently at $15.5 billion — is unlikely to keep up.

Total May volume was $31.167 billion in 750 deals versus $35.358 billion in 1,295 issues a year earlier. In a continuing trend, new-money issuance was up 14.2% in May year-over-year.

The Bankruptcy Judge extended the deadline for PREPA debt negotiations to July 1 and bondholders expressed frustrations, warning they may seek full repayment if a deal is not made.

The rapid swing to lower yields over the past week has led to a sunnier outlook for the summer reinvestment season, but uncertainties on the economic front, rate volatility, and supply questions hang overhead.

Investors will be greeted Tuesday with a decrease in supply with the new-issue calendar estimated at $2.691 billion in $1.786 billion of negotiated deals and $904.9 million of competitive loans.

Chicago's decades-long casino chase has moved closer to reality with Mayor Lori Lightfoot banking on the fiscal jackpot to help fund the city's pensions.

All parties except for the Unsecured Creditors Committee support the extension.

The boutique consultancy firm, which focuses largely on transportation infrastructure, is growing "modestly" amid an uptick in federal funding.

An Illinois judge upheld the constitutionality of the state's consolidation of downstate public safety pension funds; an appeal is expected.

A firm representing the Oversight Board also represented firms that acquired a loan portfolio from a board-controlled entity.

Municipals improved for the fifth session in a row with 10- and 30-year triple-A yields falling 30 basis points since Thursday. Connecticut priced $1 billion-plus of GOs and saw yields lowered in a repricing.