Despite a relatively drama-free resolution to the nation’s debt limit debate, risks remain for state and local governments, chief among them cuts in federal spending, higher borrowing costs and skittish municipal market buyers. That was the message from panelists weighing in Thursday during a webinar hosted by the Volcker Alliance on the implications of the
Bonds
The House Wednesday passed legislation to block a proposed Department of Energy rule that may effectively ban many models of gas stove, a move strongly opposed by public gas utilities. The Save Our Gas Stoves Act passed the House with bipartisan support. The legislation is the second of two pieces designed to slow the roll
Facing notorious traffic jams and a desire to expand transit options, Los Angeles has rekindled a plan to charge motorists to drive into the city. If it is implemented along with a similar plan in New York, it would bring congestion pricing to the two largest cities in the U.S. The Los Angeles County Metropolitan
New York City Comptroller Brad Lander and Public Advocate Jumaane Williams appointed five members to the advisory board of the city’s Independent Budget Office on Wednesday. Two of the appointees, Dean Fuleihan and Melanie Hartzog, were members of former Mayor Bill de Blasio’s administration. The board consists of 10 people appointed by the comptroller and
The Municipal Securities Rulemaking Board has added Jerry Ford to serve as a municipal advisor representative on its Board of Directors, filling the spot left vacant after Jill Jaworksi left her position to become the chief financial officer for the City of Chicago. Ford is a familiar face to the MSRB, having served on the
The IRS announced Wednesday clarifications to rules affecting clean energy tax credits that are expected to boost bond issuance. The credits were delivered via the Inflation Reduction Act, and took effect in January, but some utilities were cautious about trying to cash them in until the agency offered guidance. Most of the nation’s electricity is
The Louisiana Stadium and Exposition District heads to market Thursday with the biggest deal of the week, a $550 million issue of revenue bonds that will help fund continuing renovations to the Caesars Superdome. BofA Securities and UBS are set to price the Series 2023A senior revenue bonds, which consist of $519.945 million of tax-exempts
The Supreme Court has, without comment, declined to hear Ohio’s challenge to the American Rescue Plan’s Offset Provision, which bars states from using COVID-19 relief money to offset reductions in tax revenue. The decision not to take up the case, urged by the Treasury Department, is the second time this year that the nation’s highest
The latest salvo in the saga of the Puerto Rico Electric Power Authority bankruptcy, bondholders want the proposed plan of adjustment to not take effect until all appeals are exhausted. Bondholders said in an objection filed with the court that the result of their planned appeal of Judge Laura Taylor Swain’s decision against their lien
Municipals were steady Tuesday largely ignoring a weaker U.S. Treasury market after the consumer price index print showed inflation cooling. Equities closed higher. The consumer price index report showed headline inflation rose 0.1% year-over-year. Ahead of this week’s policy meeting, Jeff Lipton, managing director of credit research at Oppenheimer Inc., said UST “bond yields have
Connecticut Gov. Ned Lamont on Monday signed into law a $51 billion two-year spending plan that includes what he called the largest cuts in the 32-year history of the state’s income tax. The plan, which passed with strong majorities last week in both arms of the state’s Democratic-controlled legislature, allocates $25.1 billion to fiscal 2024
Bond traders are underestimating how much Tuesday’s Consumer Price Index report will show the inflation rate dropped last month, according to Citigroup Inc. strategist Raghav Datla. Datla’s assessment is partly based on comparing traders’ positioning now relative to back in January. Just five months ago, the market was coming off two consecutive lower-than-forecast CPI prints.
Municipals were steady ahead of this week’s consumer price index print and Federal Open Market Committee meeting. U.S. Treasuries were slightly firmer on the front end and equities were up near the close. The two-year muni-Treasury ratio Monday was at 64%, the three-year at 67%, the five-year at 68%, the 10-year at 69% and the
Federal officials have pledged resources to help Pennsylvania rebuild a busy section of Interstate 95 through Philadelphia that collapsed Sunday after a tanker truck caught fire. The federal aid will help the Commonwealth manage what’s expected to be months-long repair of what Gov. Josh Shapiro called “just remarkable devastation.” Federal help will mitigate immediate costs
The municipal bond market expanded in the first quarter of the year as ownership by households, mutual funds, foreign investors and life insurers rose, but U.S. bank ownership of municipal securities fell, the latest Federal Reserve data shows. The first quarter of 2023 has been regarded as a markedly better start than 2022 and that
Facing projections its unfunded liability for retired city worker benefits like health care would balloon to about $9 billion over 30 years, Houston last week created a trust, which along with previous cost-saving measures, are aimed at greatly shrinking that obligation. The other post-employment benefits (OPEB) trust was part of a $6.2 billion all-funds, fiscal
The American Securities Association has named Patrick Bond as its new vice president and head of public affairs, where he’ll lead the group’s communications and public affairs strategies and help to advance its policy agenda. The addition comes after the group added muni industry veteran Jessica Giroux, following her departure from the Municipal Securities Rulemaking
Changes to Illinois state pension benefits that may be needed to comply with federal Social Security rules carry an estimated $5.6 billion tab through 2045, according to an actuarial study published this week. State employees hired after 2010 get lower pension benefits than those hired before. Pension experts have long warned the Tier 2 benefits
A lawyer for the Puerto Rico Electric Power Authority bondholders argued Thursday that if a receiver had been in place early on in the PREPA bankruptcy process, they would have controlled him or her and therefore raised rates to repay bonds in full. Assured Guaranty Attorney Mark Ellenberg argued that to be the case in
Municipals were little changed Friday ahead of a smaller new-issue calendar, outperforming a weaker U.S. Treasury market for another session. Equities ended up. Triple-A yields were mostly flat while UST yields rose up to nine basis points on the front end, pushing muni to UST ratios there lower. The two-year muni-Treasury ratio Friday was at
The Massachusetts Bay Transportation Authority approved a $2.72 billion fiscal year 2024 budget that features $174 million in new spending amid declining revenues and expectations of a budget shortfall. The MBTA executive board voted unanimously on Thursday to approve the plan and a 7% bump in year-over-year spending amid predictions for a 10% dip in