Municipal Markets

Cleveland Clinic Sells $400 Million Taxable Century Bonds

September 17, 2014

The Cleveland Clinic Foundation sold $400 million of taxable century bonds last week, priced at par to yield 4.858 percent. On Sept. 11, prices reached a high of 100.36 and fell to a low of 98.66 on Sept. 12. Prices recovered Sept. 15, rising to 99.06. Moody’s rated the debt

Guam Power Readies Revenue Bond Sale as Debt Service Balance Increases

September 10, 2014

The Guam Power Authority is expected Guam Power Authority to sell $76.5 million of revenue bonds maturing between 2017 and 2044. The chart shows historical and projected operated revenue and expenses and the balance available for debt service. Operating expenses are expected to increase to $369.3 million in fiscal year 2018 from $339.8 million in fiscal 2009. Operating revenue

Inflows Increase Threefold in August as Nuveen, Wells Fargo Lead Gains

September 3, 2014

Investors poured $1.56 billion of new Fund Flow Winners, Losers cash into municipal bond funds that report weekly to Lipper US Fund Flows in August, compared to $472.3 million in July. Nuveen, Wells Fargo and Invesco pulled in more money in August than in July, reporting $569 million, $196 million and $114 million, respectively. OppenheimerFunds also saw outflows

Some Equity Funds Buy Puerto Rico GOs

August 27, 2014

Franklin Resources Inc. is leading money managers in adding junk-rated Puerto Rico bonds to mutual funds that focus on equities or other asset classes. The companies bought GOs as prices on Puerto Rico debt set record lows this year on speculation the U.S. territory and its agencies would default. The firms join hedge funds and other non-traditional buyers of

Los Angeles Faces $15 Billion Bill as Pipes Spring Leaks

August 20, 2014

Los Angeles is showing its age, and city officials don’t have plans for financing the facelift. From buckling sidewalks to potholed thoroughfares to storm drains that can’t handle a little rain, the infrastructure that holds the second-largest U.S. city together is suffering from years of deferred maintenance. Bringing pipes that deliver water to 3.9 million people

Detroit Creditor Syncora Says Biased Mediators Brokered Art Deal

August 13, 2014

An $800 million settlement underpinning Detroit’s plan to exit from bankruptcy was brokered by biased mediators and should be thrown out, bond insurer Syncora Guarantee Inc. told a federal judge. Syncora, which may be forced to make up bondholder losses should the plan be approved, filed its objection to the proposal yesterday, as Judge Steven Rhodes

Brown Proposes $6 Billion Water Bond for California Amid Drought

August 6, 2014

California Governor Jerry Brown called on lawmakers to put a $6 billion “no-frills’’ bond measure on the November ballot, about half the size of a pending proposal, to secure the water supply amid a record drought. Brown’s plan would take the place of an $11.1 billion bond offering, scheduled for a vote in November, approved

Joe Mysak Commentary – Defending Tax-Exemption.

August 4, 2014

This article was originally published in Bloomberg Brief Municipal Market 7/22. The tax-exempt market “raises equity questions,’’ Senator Ron Wyden, D-Oregon and chairman of the Senate Finance Committee, told reporter Brian Chappatta last week during a Q&A session at Bloomberg headquarters. He expanded, “I have accountants come and tell me ‘here’s all the people that we do

Municipal Market First Half 2014 Stat Book

August 1, 2014

Municipal bonds rallied, defying analyst expectations as supply fell more than 20 percent while mutual fund inflows and principal and interest payments boosted demand. With issuance in the first half of 2014 at its lowest since 2011 and a top tax bracket at its highest since 2000, munis posted their best second quarter returns

East Bay MUD Prices Richer Than Benchmark AAA Munis Inside 10 Years

July 30, 2014

California’s East Bay Municipal Utility East Bay MUD Pricing District issued $82.4 million of revenue bonds Tuesday with lower yields on the front end of the curve than when the issuer sold debt in May. Two-year debt sold with yields at 0.25 percent, versus 0.29 percent in May, and was richer than Bloomberg’s AAA muni benchmark scale. Debt