Bonds

Bondholders of Puerto Rico’s primary pension system filed a motion to seize control of the system. About 30 investment funds filed the motion in the Title III bankruptcy for the Employees Retirement System. The motion was entered in the U.S. District Court for Puerto Rico on Wednesday. Chapman Strategic Advisors Managing Partner James Spiotto said

WASHINGTON — The Trump Administration’s decision to strip funds from the California high-speed rail project leads to a potentially dangerous politicized approach to financing infrastructure, sources said. On Tuesday, the Trump administration said it was terminating a $929 million dollar federal grant to the California High-Speed Rail Authority, according to a U.S. Department of Transportation

New Jersey is on pace for a revenue shortfall driven largely by the effects of federal tax law changes, according to Gov. Phil Murphy’s administration. The Garden State’s tax collection growth from major revenue sources is at 3% seven months into the 2019 fiscal year, a Department of Treasury report said last week. The Murphy

Business activity grew modestly in New York State in February, according to firms responding to the New York Federal Reserve’s Empire State Manufacturing Survey. The New York Fed said on Friday that the general business conditions index rose five points to 8.8. “Manufacturing firms in New York State reported that business activity grew, though like

U.S. factory production unexpectedly contracted in January, shrinking the most in eight months on weakness in the automotive sector and indicating a weak start to the year as headwinds including a trade war with China weighed on factories. Manufacturing output fell 0.9% after a downwardly revised 0.8% increase in the prior month, Federal Reserve data

CHICAGO — Take more time and borrow more money: those are among the components of Illinois Gov. J.B. Pritzker’s plan to deal with the state’s $133.7 billion of unfunded pension liabilities. Illinois would extend its existing payment schedule for the pension liabilities by seven years and use a combination of asset transfers, $2 billion in

New Jersey Transit agreed to make back payments to Amtrak in a settlement both sides say will pave the way for infrastructure improvements. NJ Transit executive director Kevin Corbett and New Jersey Gov. Phil Murphy announced Wednesday a $182 million financial settlement for back payments it owes to Amtrak under the 2008 Passenger Rail Investment

CHICAGO — Illinois could balance its books and begin tackling a $7 billion unpaid bill backlog and $133.7 billion pension burden through a combination of belt tightening, new taxes, and supplemental pension contributions. That’s the recommendation from the Civic Federation of Chicago’s Institute for Illinois’ Fiscal Sustainability, which annually offers advice to state leaders for

The Puerto Rico Sales Tax Financing Corp. (COFINA) swapped new bonds for old on Tuesday in the biggest municipal debt restructuring in U.S. history. What had been about $17.6 billion in COFINA bond par value became about $12 billion in new COFINA bond value. The Puerto Rico Oversight Board announced the consummation of the deal.

The muni market firmed up on Monday, ahead of what should be another busy week. Ipreo forecasts weekly bond volume will rise to $6.4 billion, from a revised total of $6.1 billion last week, according to updated data from Refinitiv. The calendar is composed of $4.96 billion of negotiated deals and $1.4 billion of competitive

Issuers are seeking clarity around new bond disclosure regulations outlined in an amendment to the Securities and Exchange Commission’s Rule 15c2-12 as the Feb. 27 deadline approaches. The Council of Development Finance Agencies and PFM hosted a webinar Thursday to shed more light on the requirements. “The big question is how will underwriters perform their

New York Mayor Bill de Blasio warned about several variables as he released his $92.2 billion preliminary budget for fiscal 2020. De Blasio, in his sixth budget presentation, cited a possible second federal government shutdown, an uncertain national economy and $600 million worth of cuts and cost shifts the state government has proposed for FY20.

In the week ended Feb. 7, the weekly average yield to maturity of the Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, fell to 4.09% from 4.11% last week. The Bond Buyer’s 20-Bond GO Index of 20-year general obligation yields increased one basis point to 4.23% from 4.22% in the

South Carolina lawmakers will dig deeper into selling state-owned Santee Cooper after receiving a report indicating high interest from companies willing to lower electricity rates and take out the public utility’s $8 billion in debt. The Public Service Authority Evaluation and Recommendation Committee decided Wednesday that the consulting firm ICF should prepare a new proposal

Improved fund balance levels combined with tax base growth from economic development projects boosted the credit rating of Newark, New Jersey. Moody’s Investors Service upgraded Newark to Baa2 from Baa3 Monday, with a positive outlook, ahead of a $51.1 million general obligation bond competitive sale slated for Feb. 14. Moody’s had revised the city’s outlook

Oklahoma Gov. Kevin Stitt urged lawmakers to boost the Sooner State’s rainy day fund to $1 billion to avoid the kind of revenue shortfalls that came after the 2014 collapse in oil prices. That crisis was worsened by income tax cuts that further curtailed revenue. Since then, former Gov. Mary Fallin and Republican legislators have

Puerto Rico bankruptcy Judge Laura Taylor Swain rejected a request to create a committee to represent Puerto Rico general obligation bondholders after a GO bondholder asked her to do so. However, Swain pointed out that the bondholder could seek the committee by petitioning the United States Trustee. The U.S. Trustee is part of the U.S.

Thomas M. Enright, who died Jan. 27 of bone cancer at 72, was remembered by former colleagues and municipal professionals for his banking industry knowledge and loyal client base. Enright held various fiscal positions with local Michigan governments before beginning a nearly 30-year investment banking career. He retired in 2016 from Hilliard Lyons where he

U.S. hiring in January topped all forecasts while wage gains cooled and the government shutdown pushed up the unemployment rate, signaling job gains remain robust without major inflation pressures that would worry Federal Reserve officials. Non-farm payrolls increased by 304,000, the most in almost a year, after a downwardly revised 222,000 gain the prior month,

CHICAGO — Loop Capital Markets LLC has hired former Wells Fargo Securities public finance chief Stratford Shields, a move the firm believes will bolster its client base and financing expertise, said Loop chief executive officer James Reynolds. Shields started at the Chicago-based public finance, corporate investment banking, brokerage, and advisory firm on Thursday as a

The New York Metropolitan Transportation Authority sold over $1 billion of securities in four competitive sales on Thursday. Municipals were stronger a day after the Federal Reserve left interest rates unchanged. “Munis are broadly rallying today with yields down from three basis points to five basis points across the curve,” ICE Data Services said. “The

Virgin Trains USA, the new identity of Florida’s Brightline private passenger rail project, launched its initial public offering on Wednesday to finance the continued expansion of the system. The announcement kicks off underwriters’ road show presentations about the IPO in a deal that will issue 28.3 million shares of common stock at $17 and $19

WASHINGTON — Dealers who sell interests in 529 plans can avoid supervisory rule violation fines under a new Financial Industry Regulatory Authority enforcement initiative that is reminding market participants of a sweeping Securities and Exchange Commission program from years ago. FINRA launched the 529 Plan Share Class Initiative this week to encourage broker-dealers to review

Puerto Rico Secretary of the Treasury Teresita Fuentes resigned Friday six months after assuming the post. Fuentes said her resignation was effective immediately. Teresita Fuentes, who assumed the position in August, announced her immediate resignation as Puerto Rico’s treasury secretary. Government of Puerto Rico She thanked Gov. Ricardo Rosselló for being allowed to serve in

A judge who stated an inclination to find the United States government responsible for impairments to Puerto Rico bonds has been replaced. On Tuesday U.S. Court of Federal Claims Chief Judge Margaret Sweeney said she was replacing Judge Susan Braden in the case Altair Global Credit Opportunities Fund (A), LLC, et al. v. the United

Kansas Gov. Laura Kelly’s budget proposal represents progress in the state’s march toward structural balance, but new outlays will still require some legislative patchwork, analysts at S&P Global Ratings said. “The state continues to grapple with fiscal pressures despite some relief from the recent boost in revenues,” wrote analysts Ladunni Okolo and David Hitchcock. “We

LONDON — The December Chicago Business Barometer was revised down to 63.8 from 65.4 previously, following the annual seasonal adjustments. Growth was revised higher in Q1 and Q2, and was unchanged in Q3. However, a downward revision to Q4 saw the Barometer unchanged over 2018 to one decimal place. November saw the largest revision, with

WASHINGTON – The new Democratic chairman of the House Budget Committee wants Congress to consider two proposals that would have a significant impact on the municipal bond industry. Rep. John Yarmuth of Kentucky wants to end automatic across-the-board budget cuts that include a reduction in the subsidy for direct-pay Build America Bonds, he told The

Puerto Rico Title III bankruptcy Judge Laura Taylor Swain raised further last minute hurdles for the final approval of a restructuring plan for $17.6 billion of sales and use tax bonds. In addition to ordering a supplemental brief in support of her legal authority to approve the Oversight Board’s revisions to the Puerto Rico Sales

Michigan’s new treasurer, public finance industry veteran Rachael Eubanks, is ready to put her bond-finance experience to work if the job of steering Michigan’s finances under Gov. Gretchen Whitmer calls for it. Eubanks has worked in public finance for 13 years, most recently as a director at Robert W. Baird & Co. In that role