Bonds

The Puerto Rico Electric Power Authority bond trustee said the Oversight Board’s proposed plan of adjustment breaches the bonds’ trust agreement. “There is a fundamental clash between the duties of bondholders to each other in the trust agreement and the three bondholder [plan support agreements (PSAs)] in the plan,” said bond trustee U.S. Bank N.A.
The Ohio state Senate on Wednesday passed a bill that included $1.27 billion in bonds for state government agency facilities, K-12 classrooms, local subdivisions’ capital improvement projects and conservation projects. The bill, HB 27, was originally intended only to give students more information about college fees and loan repayment. And Senate Democrats voiced reservations about
Municipals were little changed to end the week ahead of an estimated $6.1 billion new-issue calendar. U.S. Treasuries were firmer, and equities ended up. Muni yields were steady throughout the week, ignoring small but “well-behaved” UST movements, which stayed “in a relatively narrow range despite some important data releases,” according to Barclays PLC strategists Mikhail
On Thursday the Internal Revenue Service provided updated guidance on how utility companies are allowed to use securitization to recover costs through rate increases to customers.   The new regulations are denoted by the IRS as Rev. Proc. 2024-15 which updates Rev. Proc. 2005-62. The ruling expands the definition of public utility companies to include publicly owned power
Puerto Rico leaders and analysts highlighted fiscal risks facing Puerto Rico’s central government, including a change in how multinationals are taxed, that could, if unresolved, jeopardize future bond payments. At the Puerto Rico Oversight Board meeting Wednesday, board Executive Director Robert Mujica Jr. said the government faced major risks in the coming fiscal years, including
Legal challenges to New York City’s congestion pricing plan threaten to delay much-needed repairs to the city’s century-old transit system, the Metropolitan Transportation Authority said.  The authority on Monday cautioned that repairs on elevated rail lines, upgrades on substations to keep power running and maintaining shop and yard facilities — all deemed state-of-good-repair work —
Municipals were steady in secondary trading Tuesday as several large deals in the primary market took focus, including the retail pricing for the $1.5 billion-plus deal of general obligation bonds from New York City. U.S. Treasury yields rose 10 years and out and equities were mixed near the end of the trading session. Other large
Broker dealers are divided over whether small firms should be dealt more relaxed regulation and compliance standards, or be subject to uniform standards that treat large Wall Street banks and single person firms the same in the eyes of the Municipal Securities Rulemaking Board. The dueling sentiments came through in response to the MSRB’s request
Municipal bond analysts should expect increased uncertainty as they work to assess the impact of pensions and other postemployment benefits on credit quality in 2024.  Pension risk — the possibility that pension and other postemployment benefit costs can rise to such a degree as to impair a bond issuer’s ability to pay its debts —