Public finance

Illinois' spread penalties widened sharply from the state's last deal, but they landed in lockstep with current trading levels as the state saw healthy demand for its $1.6 billion GO issue.

Investors pulled $7.270 billion from muni bond mutual funds in the week ending May 11, per ICI data, while exchange-traded funds saw $1.756 billion of inflows, the fourth week of record inflows.

The main bond classes appear to clear the two-thirds majority needed for a court endorsement.

Moody’s Investors Service raised the city's rating, noting noted a trend of strong finances, a diverse economy and a willingness to tackle pension issues.

St. Louis County will take competitive bids on the $114 million issue Wednesday, amid concerns about rising construction costs for the project.

The authority currently projects $169 million in losses over three months, though FAFAA says it won't be that bad.

On the buy-side, weakness, outflows, supply issues, and poor liquidity are making life challenging for municipal bond investors. The same could be said for issuers.

While only 12% to 15% of municipal bond trading volume is performed electronically, various market participants say the time to embrace new technologies is now.

Laura Rabinow of the Rockefeller Institute of Government talks with Chip Barnett about New York State’s $4.2 billion environmental bond referendum. Find out how the Clean Water, Clean Air and Green Jobs Environmental Bond Act of 2022 got on November's ballot and what it will actually do. (20 minutes)

California has received the most, at $9.7 billion, followed by New York. Transportation is the top spending category nationally followed by climate, energy and environment.

Deep-in-the-red municipal returns are not helping assuage investor concerns, creating a negative feedback loop that has yet to see a pause.

Rising construction costs coupled with the Great Resignation means New Orleans is receiving fewer bids on its RFPs, Mayor LaToya Cantrell said.

The airport was heavily exposed to the now-defunct JetBlue airline, but Southwest has filled the gap.

Assuming the taxable and tax-exempt rates are highly correlated (and in fact they are), we can show that the expected cost of a fairly priced callable bond exceeds that of an optionless bond.

A spike in POB issuance last year that was spurred by low interest rates, roaring stock markets, and other factors is likely to wane.

Last year the university's investment portfolio grew by 47%, a factor contributing to the university's triple-A ratings.

Despite compelling yields and ratios, buyers continue to be selective. Even if rates stabilize, municipal investors will likely be cautious for some time, waiting for fund outflows to abate, strategists said.

Gov. Newsom doubled down on an $11.5 billion gas rebate plan opposed by fellow Democrats in his May budget revision.

Toll roads could see a negative impact if elevated fuel prices linger for three years or longer, but mass transit would benefit, says S&P Global Ratings in a report.

Fitch Ratings revised its outlook on the city's AA-minus rating to positive ahead of a $1.08 billion general obligation bond sale.