Bonds

Puerto Rico’s legislature may prove to be a roadblock to the debt restructuring deal for the island’s electric utility. Since early September about 90% of bondholders and insurers have signed on to support the Puerto Rico Electric Power Authority restructuring, according to the Puerto Rico Oversight Board. “At least the base case understanding of PREPA’s
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Four fiscally strained hospitals on Chicago’s South Side would join forces to form a new system under a proposal that calls for $1.1 billion in capital spending on new facilities before any existing facilities close. The announcement marks a twist in the ongoing consolidation of the not-for-profit healthcare sector. Big systems have swallowed up struggling
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Legal struggles over revenue bonds issued by the Puerto Rico Highways and Transportation Authority, Infrastructure and Finance Authority, and Convention Center District Authority intensified this week. On Thursday the Puerto Rico Oversight Board filed three adversary proceedings totaling 2026 pages, each concerning one of the authorities’ bond types. In each, the board challenged bond insurers’
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New York Gov. Andrew Cuomo wants to tackle the state’s budget gap by controlling spending instead of with major revenue increases. Cuomo released his $178 billion 2021 fiscal year budget proposal Tuesday amid the Empire State grappling with a $6.1 billion shortfall tied largely to a $4 billion increase in Medicaid costs. The Democratic governor,
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The secondary market price of Puerto Rico’s 2014 general obligation bond increased 40% since June 11. On that date IHS Markit had an imputed market price of 47 cents on the dollar. The price as of Thursday was 66.75 cents on the dollar. One analyst said, “Much of the recent economic news for PR has
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Chicago’s $1.5 billion sale of general obligation refunding bonds and Sales Tax Securitization Corp. debt generated $310 million of savings for budget relief this year and next, city officials said. The deals that priced Wednesday and Thursday marked the first bond issues by Mayor Lori Lightfoot’s administration. Lightfoot’s $11.65 billion 2020 budget relies on $210
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Second, when interest rates go higher, as they will do sooner or later, it will become much more painful to finance annual deficits. “Third, in some countries high debt levels may generate default risk, high interest rates, capital outflows (as in Greece), and a debt crisis that may impose austerity when it is particularly costly,”
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Municipal bond investors looking for yield turned their focus to the Midwest on Wednesday as deals coming out of Chicago looked likely to satisfy their appetite, for now. Primary marketChicago (NR/BBB+/BBB-/A) hit the market Wednesday with the general obligation bond piece of its planned refunding deal that totals about $1.5 billion. JPMorgan Securities tentatively priced
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Puerto Rico Employees Retirement System bondholders appealed a district court ruling against them to the First Circuit Court in Boston on Wednesday. On Tuesday U.S. District Court Judge Laura Taylor Swain rejected the bondholders’ motion for her to appoint them as a trustee for ERS. Adobe Stock The First Circuit Court posted a case opening
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California Gov. Gavin Newsom prioritized programs to combat homelessness, prevent wildfires and make healthcare more affordable as he unveiled his $222.2 billion 2020-21 budget Friday. The expansive budget included much more than his stated trio of priorities. The budget proposal anticipates a surplus for the seventh time in eight years even as spending increased by
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A power plant with about 14% of Puerto Rico’s electrical power generating capacity will probably be down for about a year or more, the Puerto Rico Electric Power Authority executive director said. José Ortiz made the prediction about the Costa Sur power plant on Wednesday. PREPA’s Costa Sur plant, pictured, may be out of service
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The Iowa Finance Authority is aiming to broaden its investor appeal with a new financial information portal that debuted ahead of a $97 million single-family housing transaction and $250 million state revolving fund deal. The investor website lays out the 45-year-old authority’s programs, their ratings, upcoming deals, projects being funded, offering documents and sale dates
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Economists in Puerto Rico said that this week’s earthquakes will have limited impact on the island’s economy unless additional temblors follow. The earthquakes hit the island’s southwest. On Monday morning there was a magnitude 5.7 earthquake and on Tuesday a magnitude 6.4 earthquake was followed by a magnitude 5.6 earthquake and multiple smaller aftershocks. The
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The California Infrastructure and Economic Development Bank has agreed to issue $125 million more revenue bonds to construct a museum for the Academy of Motion Picture Arts and Sciences, presenter of the Oscars. A sale date hasn’t been set, but Wells Fargo expects to price the bonds in late January or early February, according to
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Atlantic City opened the new decade with a rating boost from Moody’s Investors Service, marking continued fiscal stability entering year four of a five-year state takeover period. Moody’s upgraded Atlantic City’s general obligation bonds two notches Friday to Ba3 from B2 and assigned a stable outlook, citing improved finances under an oversight program established under
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Dallas/Fort Worth International Airport (Photo by Robert Alexander/Getty Images) When looking for municipal bonds to buy, there are numerous details to study before pointing and clicking to buy or telling one of the few live brokers still around to pull the trigger. Let’s go through the steps with a recent example. Pulaski Community School District
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The municipal bond market rallied to the tune of seven basis points as the first new issuance of 2020 — and the biggest slate in over two weeks — looms on the horizon. Municipal bond buyers have plenty of cash in hand and will have various options as to where to put that money to
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