Wide-spread mask wearing and following other health-care measures will be vital to economic growth in the U.S., said Federal Reserve Bank of Dallas President Robert Kaplan. “While monetary and fiscal policy have a key role to play, the primary economic policy from here is broad mask wearing and good execution of these health-care protocols,” Kaplan
As the summer reinvestment season heats up, buyers will see a large slate of new sales in the upcoming week, led by issuers in New York, Texas, Maryland and Virginia, which are dominated by taxable offerings. There will be nearly $14 billion of new issues in the height of the summer as issuers clamour for
WASHINGTON — The Senate Banking Committee has scheduled a vote to advance a controversial Federal Reserve Board nominee to the full Senate floor. The committee will vote July 21 on the nomination of Judy Shelton, who has been an economic adviser to President Trump and whose views have aroused concerns among both Democrats and Republicans.
Municipal bond buyers saw a last wave of new supply flow into the market on Thursday. For the ninth week in a row, investors put cash into municipal bond funds as Refinitiv Lipper reported $1.02 billion inflow into the funds in the week ended July 8. Munis remained stronger in light trading activity as buyers
New York’s Metropolitan Transportation Authority and the Transit Innovation Partnership have launched a “COVID-19 response challenge” to engage the private tech industry and rapidly evaluate and deploy innovative technologies that make public transit safer in light of the pandemic. “To truly modernize every element of how we run our transit system, you have to look
Municipal market players saw a bevy of notes and bonds price into a strong environment where issuers took advantage of low rates and buyers with reinvestment cash snapped up the new deals. The post-holiday climate in the municipal market reflected strength as yields fell slightly amid an ongoing hearty appetite for new paper. “For the
The third of three stories marking the anniversary of PROMESA. The future of Puerto Rico is cloudy. The economy has been in decline for all but two years since 2006, the government is loaded with debt, much of it in default, and competing forces are litigating its future. For the territory to improve, sources said
The Port Authority of New York and New Jersey’s decision to issue $1.1 billion in taxable notes this week underscores multi-year revenue challenges confronting the bi-state agency. Citi priced the three-year notes in a negotiated deal Tuesday. The Port Authority plans to use proceeds to pay debt service on outstanding consolidated bonds. The notes, which
When market participants return to work after the long holiday weekend, they will see a chunky slate of supply waiting for them as issuers take advantage of low rates and a stable marketplace. Offerings from issuers in California, Oregon and Washington state top the calendar. IHS Ipreo estimates weekly volume at $7.38 billion, consisting of
Puerto Rico bankruptcy Judge Laura Taylor Swain rejected three related claims of bondholder liens on broad categories of commonwealth revenues, likely resulting in nearly $7 billion of outstanding debt paying pennies on the dollar. This also could result in a knock-on effect for other bond types of Puerto Rican debt. The judge’s decision is also
The public agency that manages St. Louis public transit hits the market as soon as Tuesday with a refunding to ease near-term COVID-19-induced revenue strains. The Missouri-Illinois Metropolitan Bi-State Development Agency is selling $171 million of combined lien mass transit sales tax appropriation refunding bonds including $13 million of tax-exempts and $158 million of taxables.
A recent audit by a California agency raised questions about a San Diego-area school district’s decision to choose a rating agency with criteria likely to result in a higher rating for a general obligation bond sale. The full Fiscal Crisis Management Team audit released June 22 reported “significant evidence” of malfeasance by current and former
Two Federal Reserve presidents said the central bank is committed to fighting racism as an economic issue, following increased disparity in U.S. labor market fortunes this year amid the coronavirus-induced recession. “I think you have seen a pretty significant change in terms of the voice of the Fed in the last six to eight months,”
Federal Reserve Chair Jerome Powell stressed the importance of keeping the coronavirus contagion contained as the U.S. economy bounces back from its deepest contraction in decades. ”We have entered an important new phase and have done so sooner than expected,” Powell said in remarks prepared for testimony before the House Financial Services Committee on Tuesday
It won’t feel like a short holiday week, as issuers expect to sell more than $7 billion of notes and bonds as the quarter and first half come to an end. IHS Ipreo estimates the June 29th week’s calendar at $7.2 billion, consisting of $6.8 billion of negotiated deals and $450 million of competitive sales.
Still working to close a COVID-19 pandemic driven fiscal 2021 budget hole, Illinois’ largest county is projecting a $410 million gap heading into the next budget with tax hikes, job cuts, furloughs, reserve use and pension contributions all on the table to fill it. Cook County’s fiscal 2021 budget projection released Friday warns of a
The Puerto Rico Oversight Board approved a fiscal plan expected to increase property tax revenues to the island’s municipal governments by 26%. The governments have been struggling financially. The move Friday afternoon is an attempt by the board to free localities from depending on central government subsidies. Puerto Rico Executive Director Natalie Jaresko said improving
Municipal prices were little changed on the day, with action focusing on new-issue supply as the big Massachusetts deal became even bigger. The issue was upsized from the original amount of $670.51 million to nearly a billion. There were some notable trades in the secondary. Berkeley Heights, California 2s of 2021, traded at 0.38%-0.37%. Collin
WASHINGTON — Ahead of the Federal Reserve’s anticipated announcement of banks’ stress test results, three Democratic senators are urging the regulator to require banks it oversees to suspend dividend payments in order to build their capital cushions while continuing to lend during coronavirus pandemic. In a letter to Federal Reserve Chairman Jerome Powell and Vice
Two rating upgrades should help Corpus Christi, Texas, achieve savings on $482 million of refunding bonds going to market over the next week, its top finance official said. The city on the Gulf of Mexico plans to price $164 million of new money and refunding general obligation bonds Wednesday through negotiation with book runner UBS.
California lawmakers said Monday they have been able to bridge what appeared to be deep differences on the 2020-21 state budget in order to reach an agreement. The Legislature approved a proposed budget June 14 that was vastly different from the revised budget released by Gov. Gavin Newsom in May. The budget agreement protects core
A second Better Housing Foundation bond portfolio in Chicago is seeking a bankruptcy-led sale that offers holders of $51.8 million of defaulted bonds a piece of $15.15 million. BHF Chicago Housing Group B LLC’s Icarus portfolio filed for Chapter 11 in the U.S. Bankruptcy Court in Chicago June 15 after reaching a real estate purchase
A second wave of coronavirus cases in the fall will probably push the U.S. unemployment rate higher again, Federal Reserve Bank of Minneapolis President Neel Kashkari said on Twitter. “Unfortunately, my base case scenario is that we will see a second wave of the virus across the U.S., probably this fall. We’re already seeing growth
Federal Reserve Vice Chairman Richard Clarida said the U.S. central bank is prepared to take additional steps to support the economy through the damage caused by the coronavirus. “We’ve taken very aggressive, proactive action,” Clarida told the Fox Business Network in an interview on Friday. “There’s more that we can do and we will.” Clarida
Hilltop Securities Inc. is bulking up its public finance team in St. Louis with the hiring of Michael Sorth, a former banker who had been working in the not-for-profit sector. Sorth joined the Dallas-based firm’s public finance division this spring as a managing director working alongside investment banker Reagan Holliday and regional office administrator Sharon
The rally in municipal bonds slowed as yields rose modestly again on the short- and intermediate-ends of the curve Wednesday, as the long-end remained steady. The primary market is in full force now, though, as new deals are flooding the market. Investors are back. Long-term municipal bond funds and exchange-traded funds saw combined inflows of
Federal Reserve Vice Chairman Richard Clarida said the economic damage wrought by the coronavirus pandemic may threaten the stability of long-term inflation expectations, a force economists believe is crucial to anchoring price pressures at their optimum level. Disruptions caused by the virus are putting downward pressure on prices generally, Clarida said Tuesday in the text
A high-ranking municipal bond banker was fired after being filmed in a viral video in which he questioned a man who chalked the words “Black Lives Matter” on a retaining wall in front of his home. Robert Larkins, who was a managing director at Raymond James and western region manager for its public finance practice,
KeyBanc Capital Markets has hired veteran municipal banker and project finance specialist Nathan Flynn to bolster its Midwestern presence, the firm announced this week. Flynn recently joined the Cleveland-based firm’s Indianapolis office as a managing director. He will cover Indiana, Midwest governments and non-profit entities, and will work on project finance opportunities nationally. Flynn will
The Rialto, California-based West Valley Water District either lacked nearly half of its internal financial control measures, or they were not functioning effectively, leading to questionable hiring, spending, and contracting practices, according to State Controller Betty Yee’s audit, released Thursday. Of the 48 fundamental components, principles, and attributes of effective internal control systems — as