Speculative grade bonds

The U.S. Virgin Islands WAPA said the Public Service Commission's reduction of electric rates jeopardizes its ability to pay bills and provide electric service.

"The broader themes from the demand perspective are that it's choppy and people are not necessarily jumping into high-yield munis with both feet," said First Eagle's John Miller.

"These are the types of products that financial advisors are asking to see from us," said First Eagle's John Miller.

The $44 million of unrated bonds, placed only with qualified investors, feature 9.5% coupons.

The bonds have not reacted to the most recent negative ratings actions, although one buysider said that may soon change.

The downgrade pushes $2.2 billion of private activity bonds issued for the passenger train startup though the Florida Development Finance Corp. to junk.

Most of the Maryland Proton Treatment Center's debt hasn't traded hands for years.

Part of the problem is lack of reimbursement from insurance companies, said the owner of one proton center.

Fallout from the Legacy Cares deal includes bondholder lawsuits against the underwriter and bond counsel, payment defaults, a Chapter 11 bankruptcy, and now fraud charges from the SEC and DOJ.

Separately managed accounts have exploded in the muni market in recent years but high-yield SMAs remain rare.