Public finance

Puerto Rico completed the exchange of more than $33 billion of existing bonds and other claims into $7 billion of new bonds plus cash and CVIs on Tuesday.

Half of the infrastructure funding is going to the states, and cities should talk to their governors to ensure they see some of that funding, White House Infrastructure Advisor Mitch Landrieu told the National League of Cities Tuesday.

As 2022 unfolds, a confluence of challenges has affected pricing, trading and fund flows in the muni market.

Washington state's future highway bonds would be bolstered by an additional revenue stream if the governor signs a bill approved by lawmakers.

The market is being driven by the prospect of higher long-term inflation and the potential that the Federal Reserve may have to raise rates further than expected.

This month the University of Michigan sold $1.2 billion and Michigan State University sold $500 million of taxable 100-year bonds.

Supported by the American Rescue Plan Act, signed into law almost exactly a year ago, cities "have come roaring back," the President said.

Restructured muni debt has "typically outperformed the broader muni market, as issuers emerge from bankruptcy with higher debt-servicing capacity and the debt re-enters the municipal high-yield index," noted PIMCO.

Lloyd Nemerever will lead portfolio management for the firm's municipal bond-focused separately managed accounts.

DASNY leads the calendar with $2.3 billion of exempt personal income tax bonds and $662.32 million of taxables. Potential volume is slated to be $5.11 billion, with $4.392 billion of negotiated deals and $718.1 million of competitive loans.

The legislation would allow tax-exempt financing for the replacement of privately owned lead service lines.

The American Rescue Plan Act helped cities avoid insolvency after the pandemic struck, some mayors said.

The ruling means the restructuring set for Tuesday will proceed.

The U.S. Department of Transportation's budget swells to $140 billion from $80 billion with the omnibus and Infrastructure Investment and Jobs Act dollars.

Outflows continue but dropped significantly in the latest week with Refinitiv Lipper reporting $662 million of outflows from municipal bond mutual funds following $2.823 billion the week prior.

A bond-funded pension buyout extension and automatic transfers into the state's now meager rainy day and pension stabilization funds are being discussed by Illinois lawmakers as they look to wrap up their spring session next month.

The omnibus bill drops a controversial measure to claw back unspent state COVID funds and includes long sought-after language to ease the transition away from LIBOR.

The judges appeared skeptical about the need for a stay.

Moody's rewarded Detroit's strides in keeping its books balanced and building reserves with an upgrade that leaves it two notches below investment grade.

The Investment Company Institute on Wednesday reported another round of large outflows, this week at $3.502 billion, up from $2.647 billion of outflows in the previous week.