Bonds

Municipals were very lightly traded, particularly out long, giving little direction to triple-A benchmark yields and leading to another day of outperformance of the asset class to the volatility in U.S. Treasuries and equities. Triple-A benchmark scales were mixed with Refinitiv MMD leaving its scale unchanged, while IHS Markit, ICE Data Services and Bloomberg BVAL

With the recent passage of infrastructure legislation in Washington, I am reminded how important the tax-exempt municipal market is to our nation’s ability to finance infrastructure through the multitude of municipal issuers across the country. At the same time, I am perplexed as to why municipal market issuance has been stuck in the range of

Shortly after her swearing in as Boston mayor, Michelle Wu acted on her signature campaign theme, free transit rides. Sidestepping the state-run Massachusetts Bay Transportation Authority, Wu asked the City Council to approve the use of $8 million in federal rescue funding to expand a pilot program for two more years, to backstop rides on

Municipals strengthened as much as three basis points on Friday as Treasuries rose in a flight-to-safety bid while stock prices plunged on fears that a coronavirus resurgence could derail the economic recovery in the U.S. and around the world. “With the news out of the World Health Organization that a new and powerful COVID variant

Michigan Gov. Gretchen Whitmer signed two executive orders laying the groundwork to speed up lead service line replacement and road and bridge spending once the state begins receiving its share of the $1.2 trillion federal infrastructure package. Michigan is set to receive about $10 billion over five years from the package signed by President Biden,

The Puerto Rico bankruptcy judge is likely to approve the Oversight Board-proposed Plan of Adjustment or something close to it this winter, observers and analysts say. While participants hoped the plan would be effective by Dec. 15 (a deadline in the bondholder Plan Support Agreement), on Nov. 17 the U.S. Attorney General asked for a

Former U.S. Treasury Secretary Lawrence Summers said Federal Reserve policy makers are signaling a “new era” in which they recognize the U.S. economy is overheating as inflation runs at its fastest in three decades. Speaking on Bloomberg Television, Summers said that Fed Chairman Jerome Powell and Gov. Lael Brainard this week used rhetoric that “portends

Municipals ended Wednesday where they began the week — unchanged — as traders’ minds were on a meal rather than munis. While the market reopens on Friday, shops will only have a skeleton staff on duty during the abbreviated post-Thanksgiving trading session with the next real test of benchmark levels taking place on Monday. Economic

If the Build Back Better legislation under consideration in the Senate becomes law, the cash would start to flow in late 2022 and peak in 2025. In reports released this week, Moody’s Investors Service and Fitch Ratings outlined the expected cash flow of the bill and its impact on the fiscal and economic position of

Bankruptcy Judge Laura Taylor Swain will give the U.S. Department of Justice until early February to file opinions on the constitutionality of the law that was the basis for the restructuring deal, meaning a final decision on the Puerto Rico Plan of Adjustment may be pushed into 2022. Swain gave the District Attorney until Jan.

Kaufman Hall & Associates LLC acquired Healthcare Real Estate Capital LLC last week in a move that folds the niche real estate capital markets arena into the array of advisory services it offers healthcare and higher education borrowers. The Illinois-based independent advisory firm provides advice on specific deals, long-term and strategic financial and capital planning,

Municipals were lightly traded and outperformed a large sell-off in U.S. Treasuries while equities were mixed following President Biden’s decision to renominate Jerome Powell as Federal Reserve Chairman. Since Powell is seen “as slightly less dovish than [Lael] Brainard, more rate hikes and more immediacy of those hikes is making its way into the yield

When Brad Lander becomes New York City’s comptroller on Jan. 1, observers will scrutinize how he will try to balance his progressive agenda with fiscal vigilance. The two are in sync, he said. “There’s an idea that competent, effective government and bold, progressive government are in some tension with each other,” Lander said at a

Los Angeles City Controller Ron Galperin released an audit Wednesday showing the city has failed to keep its legally binding promise to repair its 9,000 miles of sidewalks. A legal settlement finalized in 2016 requires the city to spend $1.37 billion over 30 years to address broken sidewalks, inaccessible curb ramps and other access barriers

COVID-19 stimulus spending caused 2021 state expenditure estimates to sky-rocket to the highest level in 35 years. That was according to the Fiscal 2019-2021 State Expenditure Report released by the National Association of State Budget Officers Friday. Total state spending reached $2.65 trillion in fiscal year 2021, a jump from the $2.28 trillion observed in

A federal request for a 10- to 15-week pause in the Puerto Rico Plan of Adjustment confirmation process as well as the related constitutional challenge to the underlying bankruptcy law may threaten the Puerto Rico debt deal. Five attorneys with the U.S. Department of Justice, led by Acting Assistant Attorney General Brian Boynton, asked Puerto

The Securities and Exchange Commission Friday censured a McKinsey & Co. affiliate and ordered it to pay $18 million to settle allegations that MIO Partners had access to material nonpublic information about issuers, including Puerto Rico, while it was overseeing investments that included the issuers’ securities. Active partners at McKinsey acting as restructuring consultants for

Municipals were stronger Friday on the back of the U.S. Treasury rally amid concerns of rising COVID-19 outbreaks in Europe. Triple-A benchmarks were bumped by one to three basis points beginning around the five-year mark with the larger moves out longer, but the asset class underperformed the five- to six-basis point moves in UST. Ratios

New York’s Metropolitan Transportation Authority finance officials have been breathing a bit easier, primarily due to multiple rounds of federal aid. The MTA, the nation’s largest mass-transit agency and one of the top municipal issuers, is in store for more than $10 billion from the infrastructure bill that President Biden just signed. That supplements the

During a contentious meeting of the Louisiana Bond Commission Thursday, J.P. Morgan Chase was disqualified from underwriting a $700 million bond refinancing due to unanswered questions about its gun policies. State Treasurer John Schroder and his staff announced the decision to recommend that Wells Fargo Corporate & Investment Banking underwrite the deal after he said

The rapid population growth Idaho has experienced has transformed its metropolitan areas from small towns into fast-paced cities. The state managed that growth well enough on the fiscal side, by maintaining high reserve levels and taking budgetary actions when needed, to earn a Fitch Ratings boost to AAA. Fitch elevated Idaho’s issuer default rating from

Teachers’ and judges’ unions and organizations argued Wednesday with the Puerto Rico Oversight Board about how the bankruptcy court must interpret a local law on pensions, with the outcome likely to determine the viability of the proposed Plan of Adjustment. The teachers and judges, through their attorneys, said Act 53 bars the board, if it

Despite overhanging market, economic, and political uncertainties, investors can still uncover value through careful security selection and structure before year end, municipal experts said. “There is opportunity for attractive yields in both the intermediate slope of the municipal yield curve and in the short, high-quality taxable market,” including taxable municipals, said Matthew Gastall, executive director

Municipals faced some pressure Tuesday on another day of a weaker U.S. Treasury market while equities made gains. A large new-issue calendar began pricing, with a few deals bumped off the day-to-day calendar. Triple-A benchmarks saw cuts of one to two basis points. Ratios held in a range Tuesday. Municipal-to-Treasury ratios were at 49% in

Federal Reserve Bank of St. Louis President James Bullard said the central bank should speed up its reduction of monetary stimulus in response to a surge in U.S. inflation. “I think it behooves the committee to go in a more hawkish direction in the next couple of meetings so we are managing the risk of

President Joe Biden Monday signed into law a $1.1 trillion infrastructure package that will infuse billions into state and local governments. “We’re taking a monumental step forward to build back better as a nation,” said Biden at a White House ceremony attended by lawmakers, governors, mayors and others. “Things are going to turn around in

San Francisco Federal Reserve Bank President Mary Daly was considered by the Biden administration for a seat on the U.S. central bank’s board and she declined, according to two people familiar with the matter. President Joe Biden has multiple opportunities to reshape the leadership of the Fed including the chair and two vice chair positions,

Gov. Phil Murphy’s surprisingly narrow re-election victory and Senate President Steve Sweeney’s stunning loss to an unknown resonated well beyond New Jersey. National pundits flagged the election-night drama, along with Republican Glenn Youngkin’s gubernatorial victory in Virginia over Terry McAuliffe and other developments, as warning signs for Democrats heading into national midterm elections. New Jersey

Raising the cap on state and local tax deductions to $80,000 from $10,000 would reduce the federal income tax liability by $55.9 billion in 2021, making it less concentrated among those with the highest incomes and making it $35.3 billion cheaper for the government than repealing the SALT cap altogether. That was the takeaway from

The Municipal Securities Rulemaking Board has re-established two key advisory groups for its 2022 fiscal year: the Compliance Advisory Group (CAG) and the Municipal Fund Securities Advisory Group (MFSAG). The MSRB is also seeking input on topics it should consider in developing compliance resources and tools for municipal fund securities. In a November 11 announcement,