Florida’s Brightline passenger train has entered into a significant debt restructuring, involving a mix of tax-exempt and taxable bonds, to support its high-speed rail line between Miami and Orlando. This restructuring has raised concerns among investors due to the various factors at play, including the issuance of unrated tax-exempt paper and the reliance on the
Bonds
In 2024, the municipal bond market saw significant outflows, marking tax-deadline selling pressure. LSEG Lipper reported a total of $1.47 billion in outflows from municipal bond mutual funds. These outflows were largely driven by higher rates and tax liabilities, resulting in negative flows from both exchange-traded funds and open-end funds. Notably, high-yield funds experienced their
The municipal bond market experienced minimal fluctuations on Wednesday due to a slowdown in supply and minor inflows into muni mutual funds. Despite U.S. Treasury yields decreasing and equity markets displaying losses, the sector remained relatively stable. Investment Company Institute data revealed that investors contributed $18 million to municipal bond mutual funds in the week
Florida has decided to enter the market early this week with a $1.5 billion taxable bond sale to bolster the state’s Hurricane Catastrophe Fund. The State Board of Administration Finance Corp. is gearing up to issue $1.5 billion worth of taxable revenue bonds in two maturities. Originally, the plan was to offer five-, seven-, and
The New York City Municipal Water Finance Authority is set to launch its second issuance of the year, amounting to $450 million in fixed-rate second resolution bonds. The funds will be allocated towards system improvements and refunding. The retail order period is scheduled for Monday, followed by institutional pricing on Tuesday. According to Andrew Rothbaum,
The bond insurance industry experienced a significant increase in the first quarter of 2024, with the two top municipal bond insurers expanding their market share. According to LSEG data, municipal bond insurance grew by 24.4% year-over-year, with a total of $7.132 billion in deals wrapped in the first quarter of 2024. This marked a substantial
In a recent announcement, the Dormitory Authority of the State of New York (DASNY) revealed that Robert J. Rodriguez has been appointed as the acting president and chief executive officer. Rodriguez, who currently serves as New York’s Secretary of State, is set to assume his new role on May 8. This appointment comes as part
Florida’s Brightline passenger train is making waves in the high-yield municipal market as it gears up for its investment grade market debut with a $2 billion deal. This marks a significant step in the company’s efforts to overhaul its debt load and increase investor interest in its operations. The upcoming $2 billion investment-grade deal by
Miami-Dade County Mayor Daniella Levine Cava recently announced the decision to scrap the proposed $2.5 billion municipal bond referendum in favor of a more comprehensive plan that includes funding for transit projects. The original bond referendum, known as “305 Future Ready,” was intended to finance infrastructure projects such as affordable housing, flood prevention, and resilient
Amid rising inflation and soaring building costs, the Kentucky Legislature has taken a proactive step to assist local schools across the state by passing a bill that permits districts to directly issue general obligation bonds. This move comes as a response to the unprecedented infrastructure challenges faced by public schools due to construction inflation, which