Refunding bonds

Minnesota plans to go to market Sept. 23 with a $1.27 billion general obligation bond sale.

The authority's borrowing apparatus is maintaining a business-as-usual approach it embarks on a massive new capital program and fends off federal cuts.

The relative rarity of the credit was compounded by their source of funds, the deal's size, and bond ratings slightly lower than New York state and city. 

An investor presentation highlights industry conferences and consulting services that "have made the CIA the 'think tank' of the food service industry."

The Illinois Municipal Electric Agency agreed with 29 of its 32 members on new contracts that last until 2055, but the holdouts include two large customers.

Michigan's Great Lakes Water Authority went to market in June with roughly a billion dollars of bonds, part of a complex transaction that included a tender.

The guidance comes as the tender market has grown from zero to $48 billion since 2019.

The state of Maryland is going to market on Wednesday by selling $1.56 billion of general obligation bonds, which will be the first major sale since the state absorbed a credit downgrade from Moody's.

The Metropolitan Washington Airports Authority is pricing $714.4 million worth of airport system revenue and refunding bonds on Thursday as part of a scheduled sale with an uncertain demand.

Issuers routinely refund 5% bonds in year 10, and the resulting savings can be significant. It is notable that although refunding is typically associated with declining interest rates, 5% bonds are refunded even if rates rise.