Speculative grade bonds

The tobacco sector has been among the worst-performing in the muni market this year, but some say it's still overvalued.

Bondholders also waived an event of default for $22 million of senior debt that Brightline took on in May.

After the DOT "expedited" a $25 million investment in the train, Q1 trespassing incidents and collisions on Brightline Florida fell 30% year-over-year, the office said.

The developer faces no penalties from the missed interest payment.

On the primary market, some deals are oversubscribed and others sent back to the drawing board.

The Nassau County Tobacco Settlement Corp's ability to continue as a going concern depends on restructuring its tobacco debt, the county's audit said.

With nearly $4.5 billion of tax-exempt bonds, a restructuring or bankruptcy would be among the muni market's largest to date.

"If successful in its motion, the trustee will harm not only patients, but also likely completely devalue all the bondholders' investments," Crossroads Health Management LLC said in a court filing.

"I don't mind owning a railroad for $2.4 billion," said Assured CEO Dominic Frederico.

The deal comes as high-yield muni investors are hungry for paper.

Senior bonds most recently traded for 30 cents on the dollar.

Brightline Florida's financial statements for 2024 and 2025 by Ernst & Young LLP, filed Thursday on the Electronic Municipal Market Access website, warn that the company lacks the cash to cover pending debt payments

"We do good work," said Mike LaPierre, president of GPM Municipal Advisors, which acts as advisor and staff to the Public Finance Authority and the California Community Housing Agency.

Saint Michael's College was downgraded to B3 from B1, as Moody's cited growing expenses and lower revenues.

The PFA owns nine bond-financed credits, ranging from proton cancer therapy centers to student housing. All but one are in default.

The risk of contagion to the rest of the high-yield market is limited, investors said.

The college's closure is the "tip of the higher ed iceberg," said a bond buyer.

Financial mismanagement and apparent revenue diversion led to events of default for centers owned by and financed through the PFA, the bond trustee said.

The city and United Airlines are navigating geopolitical volatility looking for an opportunity to sell the debt.

Brightline asked S&P to withdraw its rating after the latest downgrade.