Category: Bonds

Municipals were weaker as mutual fund outflows continued, while U.S. Treasuries extended their selloff and equities ended in the red. Triple-A yields rose one to three basis points, with the larger losses out long, while UST yields rose eight to 10 basis points across the curve. Muni-UST ratios fell with the three-year at 65%, the…

Three not-for-profit health systems cut the number of ratings they pay for amid a backdrop of strained operating conditions with margins squeezed by sector-wide expense pressures. SSM Health and OSF Healthcare System in the Midwest and Scripps Health in California all confirmed their decision to drop Moody’s Investors Service in emails. SSM and Scripps published…

Bondholders and insurers of Puerto Rico Electric Power Authority revenue bonds are defending what they say is their lien on the authority’s revenues. The parties filed a 73-page defense Monday in an adversary complaint in the PREPA bankruptcy on the lien issue. Their defense responds to an Oversight Board complaint submitted Oct. 3 that said…

A ransomware attack on CommonSpirit Health may cause operational headaches but it doesn’t pose a near-term threat to the nation’s largest not-for-profit healthcare system’s A-minus rating, Fitch Ratings said. The cyberattack also didn’t get in the way of the system’s Tuesday pricing of $1.3 billion of new money and refunding paper. The system added disclosure…

Municipals were little changed Tuesday amid a multi-billion-dollar large new-issue day with various credit offerings, while U.S. Treasuries improved slightly and equities ended up. Triple-A curves were a touch firmer in spots as secondary trading took a backseat to the larger primary activity with Connecticut general obligation bonds, CommonSpirit healthcare and several competitive issues led…

States and localities would be required to implement greenhouse gas emissions performance measures under a proposed federal rule that’s sparked opposition from issuer groups and Republican senators. The proposed rule from the Federal Highway Administration would require state departments of transportation and metropolitan planning organizations to establish greenhouse gas emissions targets and develop a method…

Munis were slightly better to kick off the week, while U.S. Treasuries were firmer 10 years and in and equities rallied. Municipal triple-A yields fell one to three basis points Monday while UST saw the 10- and 30-year end the session just above 4%. “Municipal bond yields decoupled from the Treasury market last week, ending basically…

Top Texas officials are pushing back against a potential crackdown by the U.S. Environmental Protection Agency on pollution in an oil and natural gas production region that generates revenue for an endowment that supports billions of dollars of debt issued by the state’s biggest public university systems. With the federal agency proposing to designate parts…

CommonSpirit Health added disclosure of a ransomware attack to its offering statements this week as the nation’s largest not-for-profit system prepares to enter the market with a $1.5 billion transaction, underscoring the acute threats posed to borrowers across the municipal spectrum. The Chicago-based Catholic system created through the 2019 merger of Catholic Health Initiatives and…

Rhode Island plans to price $227 million of general obligation debt Tuesday in a deal that underscores the state’s capital commitment to education. The competitive deal will price in two tranches: a $162.4 million tax-exempt Series A and $60.3 million federally taxable Series B. The bonds carry the AA rating of Fitch Ratings, Aa2 from…

Municipals were little changed Friday, largely ignoring a weaker U.S. Treasury market, ahead of a larger new-issue calendar that features several billion-dollar state general obligation deals. U.S. Treasury yields rose, pushing them to multiyear highs. The two-year closed above 4.5% and the 10-year eclipsed 4%. Equities ended down on continued concerns over inflation. Muni-UST ratios…

An agreement among the Puerto Rico Oversight Board and the local government in the Puerto Rico Electric Power Authority bankruptcy leaves the latter with moderate power in the bankruptcy process, observers say. The board, the Puerto Rico Fiscal Agency and Financial Advisory Authority, and the PREPA bond trustee U.S. Bank National Association filed the agreement,…

Bancroft Capital is beefing up its Dallas-based municipal bond team with the hiring of two individuals with extensive market experience. The certified service-disabled veteran-owned small business, which specializes in institutional brokerage and capital markets services, announced the addition of Alix Cethoute as director of municipal underwriting and Jack Logan as director of municipal sales. Alix…

The outlook on Hawaii’s Aa2 rating was lowered to stable from positive by Moody’s Investors Service ahead of an $800 million taxable general obligation bond deal. The outlook revision “reflects our expectation that given its significant tourism industry, lagging demographic trends, and already high cost of living, Hawaii is vulnerable to high inflation and potentially…

Bankruptcy Judge Laura Taylor Swain approved the Plan of Adjustment for the Puerto Rico Highway and Transportation Authority, reducing its debts by 80% and saving it more than $3 billion in debt service payments.   Swain approved the HTA debt plan on Tuesday in the U.S. District Court for the District of Puerto Rico. Swain overruled any prior…

Disclosure fraud, which represented almost all of the Public Finance Abuse Unit’s enforcement actions this year, ranks as the highest concern for municipal market participants. That’s according to an audience poll at the National Association of Bond Lawyers’ Workshop on Thursday, which collected 72% of the audience vote, followed by municipal advisors with 17% of…

Municipals were firmer in secondary trading Wednesday as the largest deal of the week, a $700 million offering from the New Jersey Turnpike Authority, took focus in the primary. U.S. Treasuries made gains and equities ended mixed after the Federal Open Market Committee minutes signaled continued tightening. “The Fed Minutes showed tightening will continue even…

Municipal bond veteran Bruce Sorensen has moved to Florida where he will continue to work for Robert W. Baird & Co. and focus on charter school finance. Sorensen joins Baird’s Sarasota office, moving from Minneapolis, and continue to focus his work on charter school municipal finance, the firm said Monday. Sorensen joined Baird in 2019…

The Washington and Oregon governors and the premier of Canada’s British Columbia province have signed a pact joining with California Gov. Gavin Newsom in setting environmental mandates that encourage electric vehicle use, and pledging dollars to investing in EV infrastructure. Newsom, Oregon Gov. Kate Brown, Washington Gov. Jay Inslee and British Columbia Premier John Horgan…

Cook County, Illinois’ proposed $8.75 billion fiscal 2023 budget relies on rising sales taxes, a healthy fund balance, and federal COVID-19 pandemic relief to stay on fiscal track while funding social initiatives and ongoing supplemental pension contributions. The proposed spending plan, up 7.8% from fiscal 2022, includes a $1.97 billion general fund, a $237 million…