Speculative grade bonds

Fortress Investment Group bought the property in 2021 after it was largely destroyed by Hurricanes Irma and Maria and financed a major renovation that featured reinforcement standards designed to protect against a category 5 hurricane.

The new debt is a "bridge loan" until the company can raise fresh financing, a bondholder said.

Bonds have traded up since the company last week announced a tentative bondholder deal and project update and financing details.

The deal would give the company time to seek additional equity, debt and federal funds.

Flows into high-yield muni mutual funds had slowed over the past several weeks, and the past two weeks have seen outflows.

Assured Guaranty commented on Brightline and PREPA during its third-quarter earnings call, on which the company reported a 46% increase in third quarter gross par written year over year, to $7.85 billion from $5.38 billion.

Moody's cited very narrow liquidity, very high leverage and concerns about delays in opening up a new campus.

Meanwhile, the Brightline West train project has floated a possible debt exchange ahead of its own mandatory redemption later this month.

The utility responded that it is not eligible to declare bankruptcy.

The financing challenges facing both Brightline projects have translated into falling bond prices.

Investors sued after the fund's sudden June selloff.

A six-notch downgrade gives the financially troubled city a non-investment grade rating of BB-plus with a negative outlook.

Carving up risk allows buyers who normally shy away from junk bonds to buy the pooled securities.

A group of bondholders are floating fresh financing to a bankrupt metals recycler that elevates their bonds above other holders.

Chicago Public Schools plans to return to market with $650 million of Series 2025A unlimited tax general obligation bonds.

"We are expecting a lot of interest in the offering next week," said Geoff Urbina, managing director, KeyBanc Capital Markets Public Finance.

"Another set of eyes helps improve the deal for everybody, including the borrower, because the borrower is going to want a successful venture too," said John Miller, head and chief investment officer of First Eagle's municipal credit team.

The largest investors in the Brightline Florida train have negotiated new terms ahead of an Aug. 13 repayment deadline.

Generous federal support is offset by a small and volatile economy, the agency said.

The risk Brightline Florida poses to the rest of the high-yield market may manifest in fund flows, investors said.