Monday, February 10, 2020 THE REGIONS A DISPUTE BETWEEN LOUISIANA’S governor and treasurer landed in court Friday. Gov. John Bel Edwards, a Democrat, filed a lawsuit against Treasurer John Schroder, a Republican, because Schroder has refused to transfer money from the unclaimed property fund to the state’s general fund despite the fact that the Legislature approved the appropriation. . 5 THE PUERTO RICO GOVERNMENT IS arguing with unsecured credi- tors about whether the Puerto Rico Electric Power Authority bankruptcy judge should con- sider a report on the impact of the PREPA debt restructuring deal.. . . . . . . . . . . . . . . . . . 5 WEB EXCLUSIVES THE HOUSE VOTED 227 TO 161 FRIDAY to advance $4.89 billion in emergency earthquake disaster aid for Puerto Rico and anoth- er $16 billion in tax breaks that appear likely to be scaled back in size if they are taken up by the Senate. NEW YORK’S NASSAU INTERIM Finance Authority has taken control of finances for the public benefit corporation that runs a struggling Nassau County hospital facing per- sistent operating deficits. CLEVELAND, OHIO’S UPCOMING $70 million sale of taxable refund- ing bonds will free up capacity for new debt issuance. NEW YORK CITY MAYOR BILL DE Blasio delivered a smorgasbord of new initiatives as he gave his State of the City address on Thursday. MONDAY www.bondbuyer.com Vol. 392 No. 35255 N.Y., N.Y. THE DAILY NEWSPAPER OF PUBLIC FINANCE Illinois gambling revenue climbed to $3 billion last year from $1.65 billion in 2012 but it’s the future growth that Illinois and Chi- cago are banking on to generate tax revenue for a $45 billion capital program and the city’s pensions. The report this week from the General Assembly’s non-partisan Commission on Government Fore- casting and Accountability on 2019 revenues and the taxes generated by that income provides a look- back as questions loom over the future growth following approval last spring of a gambling expansion package. The legislation signed by Gov. J.B. Pritzker authorized six new casinos, added additional gambling Gambling Taxes Turn an Illinois Revenue Corner BY YVETTE SHIELDS Turn to Gambling page 4 $500M $600M $700M $800M $900M $1B 2012 2013 2014 2015 2016 2017 2018 2019 Illinois revenue from gambling taxes Source: Commission on Government Forecasting and Accountability MSRB Backs Submission Calculator The Municipal Securities Rulemaking Board does not want to withdraw a proposal to more visibly track the timeliness of sec- ondary market disclosures in the midst of opposition from analysts and issuers. In a letter filed to the Securi- ties and Exchange Commission Thursday afternoon, the MSRB said the SEC should not reject its “submission calculator” despite criticism from muni market par- ticipants. The tweak to EMMA would help efforts to improve transparency in the market, the MSRB said. “The MSRB believes the pro- posed rule change is complemen- tary to such efforts and so the proposed enhancements should not be withdrawn or disapproved at this time in anticipation of the outcomes of ongoing industry initiatives,” said Gail Marshall, MSRB chief compliance officer. The MSRB proposed the “sub- mission calculator” in November and would show the number of BY SARAH WYNN Turn to Indicator page 4 cities. Moody’s Investors Service and S&P Global Ratings each rate Boston triple-A. Walsh, mayor since 2014, said Boston will double its operating and capital budgets to $100 mil- lion for affordable housing. The five year plan, according to the mayor, will add thousands of homes affordable to a range of incomes, from the most vulnerable to the middle class. He intends to sell the 1,000-space Lafayette Garage in Downtown Crossing and work with the state legislature to enact a transfer fee — which Walsh and the City Council approved — of up to 2% on private real estate sales above $2 million within the city. “What the City of Boston is trying to do is leverage its local resources with an approach using a scalpel,” said Gilbert Winn, chief executive of WinnCompanies, a Boston-based multifamily devel- opment and management compa- ny. It is one of the largest owners and the largest manager of afford- able rental housing in the U.S. “They’re using a flexible ap- proach because it’s getting harder for the state and federal govern- ments to contribute resources.” Winn called the garage sale a viable option. “Boston has been Calling housing “the biggest economic challenge our residents face,” Boston Mayor Martin Walsh announced a five-year, $500 mil- lion affordable-housing initiative in his State of the City address. With Boston among many cities and states scrambling for answers to rising rental prices and the ef- fects of gentrification, Walsh’s approach has drawn widespread attention. Boston’s booming economy and growth in high-paying sectors such as tech has spawned worries over rental prices. A mass transporta- tion crisis and traffic congestion have worsened the problem. Nationally, economic growth combined with historically limited housing production have spawned a crisis, even among triple-A rated Boston Mayor Martin Walsh called affordable housing “the biggest eco- nomic challenge our residents face.” Boston’s Plan For Housing Turn to Boston’s page 6 BY PAUL BURTON Bloomberg News FRIDAY’S YIELDS Complete market coverage appears on page 2 1.6 2.1 2.7 3.2 3.8 02/07 02/04 01/30 01/27 The Bond Buyer 40 2.3 2.6 2.9 3.3 3.6 3.9 4.3 4.6 5.0 F J D N O S A J J M A M To Par Call 2.41 Down 0.02 To Maturity 3.53 Unchanged
Transcript
Monday, February 10, 2020
THE REGIONS
A DISPUTE BETWEEN LOUISIANA’S governor and treasurer landed in court Friday. Gov. John Bel Edwards, a Democrat, filed a lawsuit against Treasurer John Schroder, a Republican, because Schroder has refused to transfer money from the unclaimed property fund to the state’s general fund despite the fact that the Legislature approved the appropriation. . 5
THE PUERTO RICO GOVERNMENT IS arguing with unsecured credi-tors about whether the Puerto Rico Electric Power Authority bankruptcy judge should con-sider a report on the impact of the PREPA debt restructuring deal.. . . . . . . . . . . . . . . . . . 5
WEB EXCLUSIVES
THE HOUSE VOTED 227 TO 161 FRIDAY to advance $4.89 billion in emergency earthquake disaster aid for Puerto Rico and anoth-er $16 billion in tax breaks that appear likely to be scaled back in size if they are taken up by the Senate.
NEW YORK’S NASSAU INTERIM Finance Authority has taken control of finances for the public benefit corporation that runs a struggling Nassau County hospital facing per-sistent operating deficits.
CLEVELAND, OHIO’S UPCOMING $70 million sale of taxable refund-ing bonds will free up capacity for new debt issuance.
NEW YORK CITY MAYOR BILL DE Blasio delivered a smorgasbord of new initiatives as he gave his State of the City address on Thursday.
MONDAYwww.bondbuyer.com
Vol. 392 No. 35255 N.Y., N.Y. THE DAILY NEWSPAPER OF PUBLIC FINANCE
Illinois gambling revenue climbed to $3 billion last year from $1.65 billion in 2012 but it’s the future growth that Illinois and Chi-cago are banking on to generate tax revenue for a $45 billion capital program and the city’s pensions.
The report this week from the General Assembly’s non-partisan Commission on Government Fore-casting and Accountability on 2019 revenues and the taxes generated by that income provides a look-back as questions loom over the future growth following approval last spring of a gambling expansion package.
The legislation signed by Gov. J.B. Pritzker authorized six new casinos, added additional gambling
Gambling Taxes Turn an Illinois Revenue CornerBy yvette ShieldS
Turn to Gambling page 4
$500M
$600M
$700M
$800M
$900M
$1B
2012 2013 2014 2015 2016 2017 2018 2019
Illinois revenue from gambling taxes
Source: Commission on Government Forecasting and Accountability
MSRB BacksSubmissionCalculator
The Municipal Securities Rulemaking Board does not want to withdraw a proposal to more visibly track the timeliness of sec-ondary market disclosures in the midst of opposition from analysts and issuers.
In a letter filed to the Securi-ties and Exchange Commission Thursday afternoon, the MSRB said the SEC should not reject its “submission calculator” despite criticism from muni market par-ticipants. The tweak to EMMA would help efforts to improve transparency in the market, the MSRB said.
“The MSRB believes the pro-posed rule change is complemen-tary to such efforts and so the proposed enhancements should not be withdrawn or disapproved at this time in anticipation of the outcomes of ongoing industry initiatives,” said Gail Marshall, MSRB chief compliance officer.
The MSRB proposed the “sub-mission calculator” in November and would show the number of
By Sarah Wynn
Turn to Indicator page 4
cities. Moody’s Investors Service and S&P Global Ratings each rate Boston triple-A.
Walsh, mayor since 2014, said Boston will double its operating and capital budgets to $100 mil-lion for affordable housing.
The five year plan, according to the mayor, will add thousands of homes affordable to a range of incomes, from the most vulnerable to the middle class.
H e i n t e n d s t o s e l l t h e 1,000-space Lafayette Garage in Downtown Crossing and work with the state legislature to enact a transfer fee — which Walsh and the City Council approved — of up to 2% on private real estate
sales above $2 million within the city.
“What the City of Boston is trying to do is leverage its local resources with an approach using a scalpel,” said Gilbert Winn, chief executive of WinnCompanies, a Boston-based multifamily devel-opment and management compa-ny. It is one of the largest owners and the largest manager of afford-able rental housing in the U.S.
“They’re using a flexible ap-proach because it’s getting harder for the state and federal govern-ments to contribute resources.”
Winn called the garage sale a viable option. “Boston has been
Calling housing “the biggest economic challenge our residents face,” Boston Mayor Martin Walsh announced a five-year, $500 mil-lion affordable-housing initiative in his State of the City address.
With Boston among many cities and states scrambling for answers to rising rental prices and the ef-fects of gentrification, Walsh’s approach has drawn widespread attention.
Boston’s booming economy and growth in high-paying sectors such as tech has spawned worries over rental prices. A mass transporta-tion crisis and traffic congestion have worsened the problem.
Nationally, economic growth combined with historically limited housing production have spawned a crisis, even among triple-A rated
Boston Mayor Martin Walsh called affordable housing “the biggest eco-nomic challenge our residents face.”
Boston’sPlan ForHousing
Turn to Boston’s page 6
By Paul Burton
Bloomberg News
FRIDAY’S YIELDS
Complete market coverage appears on page 2
1.6
2.1
2.7
3.2
3.8
02/0702/0401/3001/27
The Bond Buyer 40
2.3
2.6
2.9
3.3
3.6
3.9
4.3
4.6
5.0
FJDNOSAJJMAM
To Par Call2.41 Down 0.02
To Maturity3.53 Unchanged
001_BB021020 1 2/7/2020 4:57:16 PM
The Bond Buyer2 Monday, February 10, 2020
Government Securities Prices 10-year: 10115/32 to yield 1.59%, up 17/32
30-year: 1071/32 to yield 2.05%, up 16/32
Municipal Bond Index 1363/32, up 6/32
The Bond Buyer’s Total: $12.408 billion, up $1.848 billion
30-Day Visible Supply Competitives: $3.546 billion, up $111.5 million
(as of 2/10) Negotiated: $8.862 billion, up $1.737 billion
TheMuniCenter List Offering Total: $17.173 billion, up $157.6 million
Friday’s Data
Major Deals This Week
Amount Lead Expected Preliminary (in millions) Issuer Underwriter Pricing Date Structure
$1,340 Grand Parkway System, Texas BofA Tuesday Serials
$1,087 New York City Citigroup Wednesday Serials$809 Grand Parkway System, Texas Goldman Sachs Tuesday Serials
Friday Business Inventories Nov.: -0.2% Dec.: +0.1%
Friday Michigan Sentiment Jan.: 99.8 Feb.: n/a
Forecasts represent the median of estimates by economists polled by IFR Markets
The economy grew “mod-erately” and the labor mar-ket continued to strength last year, Federal Reserve Board Chair Jerome Powell said in the latest monetary policy re-port, submitted to Congress on Friday. While downside risks to the outlook have “re-ceded somewhat,” the corona-virus is a new concern.
“Downside risks to the eco-nomic outlook seem to have receded somewhat in the lat-ter part of 2019,” the report says. “Labor market conditions and economic growth in the United States have been resilient to the global headwinds in 2019, and conflicts over trade policy diminished somewhat to-ward the end of the year. Economic growth abroad also shows signs of stabilizing, though the coronavirus outbreak presents a more recent risk.”
And while threats have receded, “for-eign financial, economic, and political developments could pose a number of near-term risks to the U.S. financial sys-tem,” Powell said.
China is vulnerable, and given its size, “significant distress in China could spill over to U.S. and global markets through a retrenchment of risk appetite, U.S. dollar appreciation, and declines in trade and commodity prices.”
Powell will follow up with appearances before the House Committee on Financial Services on Tuesday and the Senate Bank-ing, Housing, and Urban Affairs Commit-tee on Wednesday.
The questions from Congress may offer more information than the report. Lawmakers are likely to ask about the Fed’s balance sheet. “Lawmakers will be interested to know how the Fed plans to extricate itself from the repo market,” said Bill Zox, chief investment officer, fixed income, at Diamond Hill Capital
Management. “While Pow-ell will probably downplay the significance of the Fed’s recent balance sheet growth, lawmakers may be concerned about what happens when the Fed begins to slow down its asset purchases.”
Steve Frazier, president of Frazier Investment Manage-ment, suggests Congress will ask, given last year’s three interest rate cuts, how will the Fed “curb excessive issu-
ance of low-grade corporate debt, which” Powell “noted was a concern for a possible economic downturn.”
In a “special topic” in the report, which was released by the Fed Friday, Powell writes, “In general, a decline in manufac-turing similar to that in 2019 would not be large enough to initiate a major downturn for the economy.” Plus, he notes, “mild slowdowns have often occurred during expansionary phases of business cycles.”
JOB GAINS
Nonfarm payrolls rose more than ex-pected in January and the December figure was revised up, but the unemployment rate ticked up, the Labor Department said Friday morning.
“225,000 jobs for January blew away the expectation of 165,000 jobs,” said Bryce Doty, a senior portfolio manager with Sit Investments. “Even the uptick of the unemployment rate from 3.5% to 3.6% was because of a good reason; the work-force participation rate increased from 63.2% to 63.4%.”
But the bond market need not sweat a possible rate hike from the Federal Re-serve “given the uncertainty surrounding the economic impact from the coronavirus and the ongoing problems with the over-night repo market.” q
Powell Calls Coronavirus a Risk in a Monetary Policy Report to Congress
Gary SieGel
Market News
‘Slam Dunk’ Taxable Bonds Make Up 36% of 30-Day CalendarThe municipal market is taking down
new-issuance with ease while taxable bonds continue to be a growing portion of the calen-dar. With rates low and demand significantly outpacing supply, some see a market in un-charted territory.
“This is truly a golden age for our market,” said Dan Heckman, senior fixed-income strategist at U.S. Bank Wealth Management. “There is no better time than now to issue long-term debt, both in terms of the current rates and the out-of world-demand — it’s a perfect storm for munis right now.”
This past week once again saw negotiat-ed deals oversubscribed for, with bumps in yields after repricing and taxable issuance continue to dominate.
“Demand was really strong all the way across the board,” Heckman said. “At these new, lower levels, there may be some hesi-tancy to buy long but we think it is the most attractive part of the curve — the short-end right now has no value and is ridiculously
expensive.”Heckman added that the
market has been and will con-tinue to be under-supplied, even though he senses there will be an uptick in issuance at these new lower rates and yields, but it still won’t be enough.
Eric Kazatsky, municipal strategist at Bloomberg Intel-ligence, noted that the market would need to produce at least $460 billion of supply annually just to satiate demand.
PRIMARY MARKET
IHS Ipreo estimates next week’s volume at $8.33 billion, up from this past week’s revised total of $6.51 billion. The calendar for the upcoming week is made up of $6.20 billion of negotiated deals and $2.13 billion
of competitive sales.There are 17 scheduled
deals $100 million or larger, with three of them competitive. There are two deals that exceed $1 billion in par amounts.
“Things will go very well next week, as there is growing appetite for taxable munis,” Heckman said. “Spreads are tight and crossover buyers can pick up spread and quality at the same time.”
Heckman sees more taxable issuance in the coming weeks.
“Taxables are a slam dunk on a relative basis,” Heckman said.
Kazatsky noted that in 2019 taxables made up 18% of all issuance. That figure has dou-bled the percentage for this year with no real plans to slow when looking at issuance over the next 30 days.
Another factor that could also impact sup-ply this year is the amount of callable Build America Bonds that are outstanding.
“Out of the total $143 billion of Build America Bonds that are outstanding, almost
20% become currently callable in 2020,” he said. “The ability of issuers to currently call these BABs could add an additional $27 billion of supply to the market this year, how-ever that would mean giving up the federal subsidy, which has been on the decline.”
He added that the leaders in 2020 callable BABs outstanding are the usual suspects when it comes to munis — California with $3.5 billion, New York with $3.1 billion and Texas with $2.7 billion.
“While the knee jerk move may be to want to take these bonds out with exempts, if at all, large issuers may realize that some buyer fatigue may be present in the exempt market and opt for the taxable option to maximize market depth and appetite. “
Kazatsky also said tax-exempt buyers may find pickings even slimmer this year, as the cost to issue alternative taxable debt has cheapened further thanks to a 20-basis point rally to start 2020.
“The pace of issuance has almost doubled from 2019 for taxable munis, which are slat-ed to steal even more market share, as they comprise 36% of the upcoming muni calen-dar,” he said. q
By aaron Weitzman
002_BB021020 2 2/7/2020 4:57:17 PM
www.bondbuyer.com 3Monday, February 10, 2020
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The Bond Buyer4 Monday, February 10, 2020
1 Ohio public pension system cuts retiree healthcare benefits
Ohio’s largest public pension fund, the Public Employees Retirement System, is launching a preemptive strike to preserve retiree health benefits over the long term by scaling back on benefits now.
2 Trump urges passage of infrastruc-ture bill without suggesting how to
pay for itPresident Trump used a small portion of his State of the Union Address to ask Congress to pass a Senate surface transportation bill.
3 A tale of two markets: Negotiated deals continue to be ‘blowouts’ (com-
petitives not so much)The muni market was weaker again on Wednesday with yields on the rise, yet that did not slow down the primary one bit. It did not matter if it was a traditional tax-exempt deal or a taxable deal.
4 Bond-backed stadiums in limbo amid threat to baseball’s minor leagues
Major League Baseball’s plan to eliminate dozens of minor-league affiliates may leave governments that subsidized their ballparks holding the bag.
5 Florida lawmakers may end utility revenue transfers to city general
fundsA practice municipalities across the country have used for decades to generate revenues and keep property taxes lower may be in jeopardy in Florida.
6 SIFMA makes late push to limit SEC’s muni advisor order
The industry organization wants to limit or kill a Securities and Exchange Commission order that would grant non-dealer municipal advisors more latitude to facilitate private placements for their issuer clients.
7 A heady bond market is primed to absorb Washington’s competitive GOs
Continued heady demand for high-quality tax-ex-empt bonds puts the Washington State Treasurer’s office in the comfort zone as it prepares to auction $800 million in general obligation bonds next week.
8 Bankruptcy to bring final cut to hold-ers of one Chicago housing portfolio
Investors holding $13.6 million of defaulted Better Housing Foundation bonds for the Shoreline portfo-lio in Chicago would get a piece of the $3.9 million sale price proposed in bankruptcy documents.
9 Taxables bolster issuance to start the year
Thanks to the taxable tear, the municipal market saw the third highest volume for the month of January in the past 10 years.
10 Court rules against Puerto Rico ERS bondholders
The United States First Circuit Court of Appeals upheld a ruling against bondholders of the Puerto Rico Employees Retirement System.
.com
Ten Most-Viewed StoriesAs of Friday, February 7, 2020
The list of most-viewed stories is compiled each Friday and emailed to subscribers. To start your subscription visit www.bondbuyer.com or call 800 982-0633.
Regions
Gambling Generated Nearly $1 Billion of Illinois Taxes in ‘19 at racetracks, raised the number of gambling positions to 2,000 from 1,200 at existing venues and expanded video gambling termi-nal machines, a key ongoing funding source for the new six-year capital plan in addition to one-time license fees. Tax structures were also altered for some forms and sports wa-gering was authorized allowing for a new revenue form.
“Many questions remain, including: the timing in which each of these changes will occur; how many new casinos/racinos will actually be opened; how will these gaming formats impact each other’s performance; and what level of revenue will these gaming formats actually generate in light of the tax rate changes and the multitude of gaming options that Illinois will soon offer?” the review notes.
Past COGFA reports on gambling have also raised questions over saturation and just how much new revenue and tax income can be generated.
The $3.03 billion of overall revenue com-ing from the existing 10 casinos totaled $1.35
billion while video gaming terminals made up $1.68 billion in the last calendar year. “When combined, revenues generated from these gaming formats have increased by near-ly $1.4 billion or 83.6%,” reads the report.
The $1.68 billion of video gambling in-come translated into $528 million of tax revenues with $84 million going to local governments and the remainder to the state. That’s up from about $4 million in total tax revenue in 2012. A portion of the 2019 in-crease comes from an increase in the tax to 33% from 30% approved in the gambling expansion package to fund the infrastructure plan. It rises to 34% later this year.
The $1.35 billion of casino revenue gen-erated $455 million in tax revenue last year from an admissions tax and graduated tax on adjusted grow receipts. That compares to $574 million in 2012.
“When combining these video gaming tax revenues with casino tax revenues, overall tax revenues grew from $578 million in calendar year 2012 to $983 million in calendar year 2019, an increase of 70.1%,” the report reads.
Overall, the numbers made a big leap from 2012 when video gambling was legalized in
the state and overall adjusted gross revenues totaled $1.65 billion.
But all of the increase came from video terminals. In 2012, video gambling was in its infancy and only 61 terminals were oper-ational so casinos accounted for nearly all of the $1.65 billion collected that year.
The number of video gambling machines has steadily risen since and now surpasses 35,000 at more than 7,000 establishments generating $1.68 billion in total revenue last year.
“This increase is expected to continue into 2020 in large part due to the terminal limit increases provided under” under the 2019 gambling package Public Act 101-0031, the report reads.
The state allows local governments to de-cide whether to allow establishments to host video gambling. Chicago has not.
The growth across the state was so strong it offset the annual decline of casino revenue. Casino revenue fell in all years between 2012 and 2019 for an overall drop of 17.4%.
Chicago is banking on drawing some of the gambling revenue that now goes to In-diana facilities just over the city’s southeast
border and experts testified at hearings that it could also cut into other nearby existing casinos such as the one just northwest of the city’s border in the suburb of Des Plaines.
The city is pressing lawmakers for tax structure changes in the new legislative session. An independent report sided with Mayor Lori Lightfoot’s assessment that the existing tax structure was too onerous to attract financing.
The Chicago Civic Federation has warned of the dangers governments face relying on gambling expansion for capital funding. The state’s last plan — Illinois Jobs Now — ad-opted a decade ago relied on video gambling but it took years to pick up steam and meet projections. That contributed to the need to draw on the general fund to cover debt ser-vice on borrowing.
The 2019 capital package relies on more than $350 million of new annual gambling tax revenue at full implementation.
“The ability of the state to implement the expansion quickly remains in doubt, as it requires implementation of new regulations and the selection of expansion,” the federa-tion wrote in a review of the capital plan. q
Continued from page 1
days between the posting of an annual fi-nancial disclosure and the end date of the financial period.
The calculation would be triggered once the submission is made on EMMA.
It would not require extra work from issuers.
MSRB’s Chief Compliance Officer Gail Marshall does not believe the rule change should be withdrawn despite criticism from stakeholders.
The new feature would provide an in-formational box including a link to the dis-closure of annual information and/or an audited financial statement for the most recent fiscal period and the end date of the financial period detailed in the disclosure. It would also include the date the disclosure was posted to EMMA and a static calcu-lation of the number of days between the posting of the first disclosure for that fiscal period and the end date of the financial period detailed in that disclosure.
The SEC asked stakeholders to comment on the proposed amendment to EMMA In-formation Facility IF-3, which outlines the basic functions of the EMMA site. Those stakeholders want the SEC to withdraw the calculator.
In particular, commenters were con-cerned about submission errors and the National Association of Health and Edu-cation Facilities Finance Authorities said it would be inevitable for there to be errors.
The National Federation of Municipal Analysts echoed that and said submission errors are already frequent in the EMMA system, posing a high risk that a meaningful number of calculations will be based on inaccurate information. NFMA suggested greater oversight of the submission process to be sure documents are classified and
labeled correctly.Though the MSRB believes commenters’
concerns are relevant to the rule change, market behaviors also come into play and would persist regardless of the rule change.
“Consequently, to the degree that the submission calculator and the other pro-posed enhancements would provide new prominence to the information submitted, the board believes that submitters would have an additional incentive to properly categorize and describe annual financial disclosures, and the incidences of submis-sions with erroneous information would be expected to marginally decline from current rates,” Marshall said.
In comments from December, partici-pants were concerned about how investors would use information from the calculator and whether it would be used to compare the timing of disclosures for different types of securities or issuers.
The Government Finance Officers said some issuers would be unfairly judged by investors that information may not be time-ly when it is submitted as quickly as pos-sible and within the timeframe noted in its continuing disclosure agreements. Under SEC Rule 15c2-12, issuers have to enter into CDA, a contractual obligation of the issuer to the investor.
NFMA said the calculator should only perform as a calculation on filings marked as audited financial filings, not for those marked as unaudited.
“The MSRB does not disagree with the observations underlying many of these comments; however, the MSRB believes that the comments do not necessarily demonstrate flaws unique to the proposed rule change but are more generally repre-sentative of the variation and complexity of disclosure practices in the municipal securities market,” Marshall said. q
Indicator of Disclosure TimelinessShould Get SEC’s Nod, MSRB SaysContinued from page 1
004_BB021020 4 2/7/2020 4:57:19 PM
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The Puerto Rico government is arguing with unsecured creditors about whether the Puerto Rico Electric Power Authority bankruptcy judge should consider a report on the impact of the PREPA debt restruc-turing deal.
The Unsecured Creditors Committee commissioned consultant London Econom-ics International to do the study, “Critique of Government Parties Assertions that the 9019 Settlement Will Not Affect Non-Set-tling Creditors and Will Avoid a Subse-quent Title III Filing by PREPA.” London Economics released the study, which says that PREPA is in a difficult position and is facing major obstacles in the future, in October.
There have been arguments between the Oversight Board and the Puerto Rico Fiscal Agency and Financial Advisory Authority, on the one hand, and the Unsecured Cred-itors Committee, on the other, since then on whether the study can be entered into evidence.
On Jan. 28 Magistrate Judge Judith Dein ordered that most of the report be made public, citing bankruptcy laws about mak-ing documents public. She ordered a small section of the document be redacted. The section is an operation and maintenance agreement between PREPA and an operator of the transmission and distribution system and is confidential commercial information.
On Jan. 31 the board published the re-dacted version of the report in bankruptcy filing seeking to have it excluded from ev-
idence. In their court filings, the board and FAFAA say that Title III bankruptcy court has already said that evidence about the proposed restructuring’s economic effects or its sustainability of rate increases are beyond the court’s scope of interest. The judges in the PREPA bankruptcy have yet to rule on the admissibility of the report into the bankruptcy.
On Nov. 14 attorneys for the Unsecured Creditors gave five reasons for the court to consider the London Economics report as evidence. First, they said that the report provides evidence that the proposed PREPA settlement will not help the authority avoid a subsequent Title III bankruptcy filing.
Second, by addressing this topic it cov-ers the value of the proposed settlement to PREPA, which judges in the Jeffrey v. Desmond case said was important.
Third and also following Jeffrey, the re-port provides evidence on how the settle-ment will affect the interests of the credi-tors.
Fourth, the lawyers say that bankruptcy Judge Laura Taylor Swain’s rulings saying the PREPA settlement hearing should have a narrow range of topics doesn’t preclude consideration of the report. This was be-cause Swain’s rulings were on discovery and not evidentiary issues or dealt with different sorts of evidence.
Fifth, the attorneys said that consider-ation of the report wouldn’t excessively slow the litigation since only one other par-ty has submitted an expert report.
The London Economics report says that PREPA is in a difficult position and is fac-
ing major obstacles in the future. It asserts that the proposed debt deal with an ini-tial 2.77 cent per kilowatt-hour surcharge, which is later to rise gradually to 4.55 cents/kwh, would curtail residents’ demand for electricity.
This, in turn, would force PREPA to in-crease rates on its smaller demand base to recover its cost of service and the debt sur-charge. That would lead to further declines in demand, forcing the authority to increase rates further.
London Economics projects that the au-thority’s paid electrical consumption would drop 70% by fiscal 2047, compared to the present. It also projects that the authority would have to raise rates annually by 2.9% and 5% through fiscal 2047, substantially higher than what it expects the inflation rate to be in those years.
A person associated with PREPA bond-holders told The Bond Buyer, “It’s really easy to make an economic report say what-ever you want.”
To understand the report, one needs to look at who financed it, he said. The study fails to include offsetting assumptions like the savings that privatizing parts of the au-thority would bring to it, the person said.
Power consumption is running substan-tially ahead of projections, a positive sign for the authority’s economic viability, he said.
The board’s stated goal of 20 cents per kw/h rate is unrealistic, the source said. Rates in all Caribbean islands are much higher and this suggests there is plenty of space for rate increases to pay the debt. q
By RoBeRt Slavin
A dispute between Louisiana’s governor and treasurer landed in court Friday.
Gov. John Bel Edwards, a Democrat, filed a lawsuit against Treasurer John Schroder, because he has refused to transfer money from the unclaimed property fund to the state’s general fund despite the fact that the Legislature approved the appropriation.
Edwards had threatened to take legal ac-tion if Schroder, who is a Republican, failed to make the funds available for the most recent Revenue Estimating Conference on the budget, which was Jan. 31. Before a Dec. 9 REC budget conference, Schroder sent a letter to the panel stating that it was his intent not to make the funds available at the end of each fiscal year.
“It is unfortunate the governor’s office was forced to take legal action against the treasurer to compel him to comply with the state’s approved budget, which includes the transfer of unused, excess dollars from the unclaimed property fund to the state general fund and to pay the bond obligations for In-terstate 49 transportation projects,” Matthew Block, the governor’s executive counsel, said in a statement Friday.
Block said excess money from the un-claimed property fund was appropriated by the Legislature and signed into law by the governor in House Bill 105 on June 18, 2019. HB 105, the 2020 state budget, appropriated $15 million for debt service and $15 million
to support the spending plan.Schroder has said he intends to continue
paying debt service but he won’t comply with any other appropriation.
A portion of the unclaimed revenue backs $111.7 million of special revenue bonds is-sued in 2013 and $73.8 million issued in 2015 to finance a portion two widening proj-ects on Interstate 49. The final maturity date on the debt is in 2036.
In fiscal 2019, Schroder paid debt ser-vice but failed to transfer the remaining $15 million. Edwards didn’t contest that move because he said the state had a large budget surplus that could absorb the loss but the suit is seeking to claim that money.
“So far, the treasurer has simply refused to transfer the money, completely flouting the will of the people’s elected representa-
tives, their governor and the letter of the law,” Block said. “The law is clear [that] excess revenues in the unclaimed property fund are to benefit the public.”
The lawsuit, filed in the 19th Judicial Dis-trict Court in the Parish of East Baton Rouge, says Schroder’s refusal to transfer the funds is contrary to law and “creates a potential budget shortfall.”From 2005 to 2018, the state general fund has received $372.5 mil-lion of the unclaimed funds.
The suit is seeking a writ of mandamus, an order from the court that would compel Schroder to “perform his ministerial duty” to transfer the money for fiscal years 2019, 2020 and all future fiscal years to support the state budget.
Schroder didn’t respond to request for comment about the suit. q
Louisiana Treasurer Sued Over Unclaimed Property FundBy Shelly Sigo
005_BB021020 5 2/7/2020 4:57:20 PM
The Bond Buyer6 Monday, February 10, 2020
TRENDS IN THE REGIONNortheast
Boston’s Mayor Unveils a $500 MillionPlan For Building Affordable Housing
very successful the last five years or so at selling specific assets,” he said.
To Michael Marz, vice chairman of Hill-top Securities Inc., Boston’s approach is precedent-setting.
“I’m not surprised to see Boston doing that, and I think you’ll see a lot more of that across the country in the housing space,” Marz said. “We’re putting a lot of energy trying to figure out a solution. Boston is interesting. Good for them and it’s a good idea to come up with the equity.”
Marz expects a bigger role for a sector traditionally an afterthought in the nearly $4 trillion municipal bond market. “By any-one’s measure, this will be a greater segment of the municipal market, even in taxables,” he said.
Housing challenges extend well beyond Boston.
In New York, City Comptroller Scott Stringer, a presumed mayoral candidate in 2021, recently assailed the housing policies of Mayor Bill de Blasio as a “gentrification industrial complex,” and announced his own initiatives.
They include universal low-income re-quirements for new development and a call for the state to eliminate the 421-a tax sub-sidy, which Stringer said costs the city $1.6 billion annually and enables developers to game the system and cherry-pick neigh-borhoods. Stringer also wants a land bank, which would use city capital funds to con-vert vacant lots into housing units.
Rhode Island Gov. Gina Raimondo has proposed $25 million for affordable housing as part of a $269 million bonding measure for a November referendum. It includes a transfer-tax increase.
In Connecticut, Gov. Ned Lamont, look-ing to counter exclusionary zoning, said recently that state transportation upgrades in suburbs could hinge on local approval of affordable housing developments.
German capital Berlin, where rents dou-
bled over a decade amid a property boom, passed a five-year rent freeze with an in-come limit on landowners, though oppo-sition leaders say they will challenge the left-leaning government’s law in court.
“Government responses to lack of afford-able housing runs the gamut,” said Greg Sullivan, research director at Boston’s Pi-oneer Institute and a former Massachusetts inspector general.
“Mayor Walsh’s initiative to increase housing in Boston is very, very interesting and deserves nationwide attention. The cit-ies of Boston and Cambridge are among the economic hot spots in the country. But we’re looking at serious impediments to our ability to grow.”
Higher rents that push some people out-side of a core city combined with serious traffic congestion and few viable transit op-tions make for an alarming mix, according to Sullivan.
“We need more affordable housing, not the traditional distribution for low-income people, but affordable to millennials, to young people, couples starting out in life.”
Affordability struggles go beyond millen-nials, said Hilltop’s Marz.
“’We see teachers and firefighters, the largest skilled labor force ... there is no af-fordable housing for them. There are dou-ble-income families who are above the 80% threshold [for 4%]. We’re seeing it in Texas, the West Coast, the East Coast.”
Marz was referring to the 4% credit under the low-income housing tax credit program — also called the 30% subsidy — which covers new construction that uses additional subsidies or the acquisition cost of existing buildings. The Tax Reform Act of 1986 cre-ated the provision, which became permanent seven years later.
In Massachusetts, the planned conver-sion of the 81-year-old Mary Ellen McCor-mack complex in South Boston to a modern, mixed-use community, with WinnCompa-nies running point, could provide a national blueprint.
“Mixed-use is certainly becoming a bigger part of our business portfolio,” said Winn senior vice president Brett Meringoff.
The planned $1.6 billion renovation and expansion at the McCormack will feature both market-rate and low-income tenants and include retail and shopping. Its 27-acre site sits within walking distance of the An-drew Square and JFK/UMass stations on the Massachusetts Bay Transportation Authori-ty’s Red Line.
“The Mary Ellen McCormack is a great example of how [U.S. Housing and Ur-ban Development] and federal solutions are not the remedies to improve the quality of life for residents and meeting the needs of communities,” said Gilbert Winn. “The old model of waiting for HUD to fix whatever needs to be fixed is not working.
“The 4% tax credit particularly lends itself to mixed income.”
Expansion could raise occupancy to 10,000 there by tripling the number of apart-ments to more than 3,000.
“When you hear about rental units, the number sounds impressive, but when you translate it into a property with 10,000 peo-ple, that’s not just a building or a collection of buildings. That’s a community,” said Bob Labes, a partner with Squire Patton Boggs. “In a well-design mixed-income project, you can’t tell who’s market rate or low-in-come, or rental or single-family.
“In mixed-income projects, developers have learned how to finance the affordable units with tax-exempt bonds and low-in-come housing tax credits, while financ-ing the market rate units with conventional debt,” Labes said. Because the market-rate units generate higher rents, he added, that can support a higher interest rate conven-tional loan and may not need the subsidy generated by the low-income housing tax credit.
“This means that communities get more new housing for the same amount of volume cap.”
State lawmakers on Beacon Hill would
need to approve the transfer tax under home-rule provisions. Some of Boston’s neigh-boring communities, notably Brookline and Somerville, have filed similar petitions with the commonwealth, prompting some housing advocates to call for a broader bill.
“I think there’s probably a pretty rea-sonable chance it could pass if it’s a local option,” Sullivan.
Still, NIMBYism, that acronym for “not in my back yard,” holds sway in many sub-urban communities, Sullivan added, citing fears of per-pupil cost effects on taxpayers. On average, Massachusetts school districts spend roughly $15,100 per student for each school year.
Gov. Charlie Baker referenced zoning re-strictions in his State of the Commonwealth speech last month. “They’re a wall between the well off and the up and coming,” he said. “They punish families and young people who are not already ‘in the market.’ And they make it almost impossible for local communities to do what makes sense for their residents.”
A report on Monday by regional planning agency Metropolitan Area Planning Council cited insufficient affordable options for fam-ilies with children are limited in the 13 cities and towns in Boston’s inner core. The study said only 39% of homes with three or more bedrooms are occupied by a family with a child under age 18, while 14% percent are occupied by a single person; 24% house two adults with no children; and 23% house three or more adults with no children.
“The results shed light on one aspect of Greater Boston’s overburdened housing market, demonstrating that there is no one cause of the lack of family housing,” the report said. q
For more content about this region, visit the Regional News tab on BondBuyer.com.
Continued from page 1
Connecticut A1/A/A+ 0.96 1.15 1.60 2.32 Delaware Aaa/AAA/AAA 0.86 0.88 1.21 1.86 Maine Aa2/AA/AA 0.87 0.92 1.28 1.98 Maryland Aaa/AAA/AAA 0.87 0.92 1.27 1.92 Massachusetts Aa1/AA/AA+ 0.86 0.92 1.35 2.06 New Hampshire Aa1/AA/AA+ 0.87 0.93 1.28 1.98 New Jersey A3/A–/A 0.96 1.23 1.69 2.36 New York Aa1/AA/AA 0.72 0.76 1.16 1.93 Pennsylvania Aa3/A+/AA– 0.89 1.00 1.48 2.18 Rhode Island Aa2/AA/AA 0.88 0.97 1.37 2.04 Vermont Aa1/AA+/AA+ 0.86 0.89 1.23 1.91 Dist. of Columbia Aaa/AA+/AA+ 0.88 0.93 1.35 2.03 Puerto Rico Caa3/CC/CC 24.06 10.43 8.16 6.71
State Ratings One-Year Five-Year 10-Year 30-Year
General ObliGatiOn Yield Curves fOr feb. 6, 2020
Sources: Municipal Market Data, Moody’s Investors Service, Standard & Poor’s, Fitch Ratings
For rates and additional information about advertising a Notice of Competitive Sale, please call Kerry-Ann C. Parkes at 212.803.8436 or send an email to [email protected].
007_BB021020 7 2/7/2020 1:15:03 PM
8 The Bond BuyerMonday, February 10, 2020New Issues
Monday, February 10 Highland Comm SD IA GO Sch *3,700 1 pm C Piper Sandler Ahlers & Cooney 21-29 --- A1 --- --- --- BQ 23-Jan
McPherson Co USD #423 KS GO *5,385 11 am C Piper Sandler Gilmore & Bell 22-39 --- --- A+ --- --- BQ 30-Jan
International Falls EDA MN Lease Rev Ref (Tax) *8,620 10:30 am C Northland Securities Taft Stettinius 20-31 --- Aa3 --- --- --- --- 4-Feb
St Charles ISD #858 MN GO Sch Bldg *9,570 11 am C Ehlers Knutson Flynn 21-42 --- --- --- --- --- BQ 31-Dec
Beckham Co ISD #2 OK Comb Purp (Tax) 2,155 11:45 am C Stephen H. McDonald State Atty General 23-24 --- --- --- --- --- --- 29-Jan
Cleveland Co ISD #29 OK GO Bldg (Tax) 2,800 1:30 pm C BOK Fin Secs State Atty General 22-25 --- --- --- --- --- --- 4-Feb
Cleveland Co ISD #29 OK Comb Purp 18,600 1 pm C BOK Fin Secs State Atty General 22-25 --- --- --- --- --- --- 4-Feb
Camp Hill SD PA GO *9,235 12:15 pm E PFM Fin Advisors Stock & Leader 21-41 --- --- --- --- --- BQ 5-Feb
Harris Co MUD #401 TX Unltd Tax 1,030 1 pm C Masterson Advisors Marks Richardson 24-34 --- Baa1 --- --- --- BQ 28-Jan
Harris Co MUD #401 TX Unltd Tax 3,360 1 pm C Masterson Advisors Marks Richardson 21-43 --- Baa1 --- --- --- BQ 28-Jan
Oak Creek-Franklin Jt SD WI GO Ref *1,555 9:30 am C Ehlers Quarles & Brady 21-24 --- --- --- --- --- BQ 10-Jan
Tuesday, February 11 Berryville SD #27 AR Ref *14,160 11 am C First Sec Beardsley Friday Eldredge 26-47 --- Aa2 --- --- --- --- 6-Feb
Newport Spec SD AR Ref & Construction *13,235 10 am C Stephens Friday Eldredge 21-50 --- --- --- --- --- --- 6-Feb
P Manchester (Town) CT GO 15,000 11 am E Hilltop Securities Shipman & Goodwin 21-40 --- --- AA+ AAA --- --- 5-Feb
Owen Vly HS Bldg Corp IN First Mtg *5,170 11 am E Baker Tilly MA Ice Miller 22-30 --- --- AA+ --- --- BQ 6-Feb
Paintsville ISD Fin Corp KY Sch Bldg Ref Rev *1,800 11 am E Ross Sinclaire Steptoe & Johnson 21-30 --- --- --- --- --- BQ 5-Feb
LakeVille Comm Schs MI Sch Bldg & Site *4,900 1 pm E PFM Fin Advisors Collins & Blaha 21-32 --- --- --- --- --- BQ 30-Jan
Natchez Adams SD MS Bond *25,000 11 am C MuniGroup Chambers & Gaylor 21-40 --- --- --- --- --- --- 4-Feb
Greensboro NC GO Hsg Ref (Tax) *13,490 10:30 am E First Tryon Advisors Womble Bond 21-24 --- Aaa AAA AAA --- --- 3-Feb
Greensboro NC GO Pub Imp *37,380 11 am E First Tryon Advisors Womble Bond 24-40 --- Aaa AAA AAA --- --- 3-Feb
Mercer County NJ GO 49,057 11 am E NW Financial Group Parker McCay 21-32 --- --- --- --- --- --- 4-Feb
P Rumson Boro BOE NJ Sch 25,743 11 am E Acacia Fin Group McManimon Scotland 21-40 --- --- --- --- --- --- 28-Jan
Nye Co SD NV GO Ref *15,660 8:30 am P JNA Consulting Sherman & Howard 21-30 --- A1 --- --- --- --- 3-Feb
Garden City Vlg NY Pub Imp *5,884 11 am E Capital Markets Adv Hawkins Delafield 21-29 --- --- --- --- --- --- 5-Feb
P New Rochelle NY Pub Imp *23,993 11 am E Capital Markets Adv Norton Rose 21-50 --- --- --- --- --- --- 3-Feb
Ohio OH GO *8,000 11 am E Acacia Fin Group Taft Stettinius 21-30 --- --- --- AA+ --- --- 4-Feb
Ohio OH GO *31,490 10:45 am E Acacia Fin Group Taft Stettinius 21-35 --- --- --- AA+ --- --- 4-Feb
Ohio OH GO *50,000 10:30 am E Acacia Fin Group Taft Stettinius 21-34 --- --- --- AA+ --- --- 4-Feb
Creek Co ESD #34 OK Bldg 150 12 pm C Stephen H. McDonald State Atty General 22-24 --- --- --- --- --- BQ 3-Feb
Central Columbia SD PA GO *6,070 12:15 pm E PFM Fin Advisors Eckert Seamans 21-39 --- --- --- --- --- BQ 5-Feb
Warrington Twp PA GO *7,010 11:15 am E Concord Pub Fin Adv Curtin & Heefner LLP 20-32 --- --- --- --- --- BQ 5-Feb
Fort Bend Co MUD #194 TX Unltd Tax Road 1,170 9 am C Masterson Advisors Allen Boone 21-44 --- --- --- --- --- --- 28-Jan
Fort Bend Co MUD #206 TX Unltd Tax 5,000 9:45 am C Masterson Advisors Allen Boone 21-44 --- --- --- --- --- --- 28-Jan
Lake Worth TX Certs of Oblig *5,660 10 am C Hilltop Securities Naman Howell 21-40 --- --- --- --- --- BQ 3-Feb
Lakeside Wtr Cntr & Imp #2-C TX Unltd Tax 4,815 10:30 am C Specialized Pub Fin McCall Parkhurst 21-40 --- Baa2 --- --- --- BQ 29-Jan
Jefferson County WI GO Corp Purp *7,600 11 am C Ehlers Quarles & Brady 21-39 --- --- --- --- --- BQ 31-Jan
Plymouth WI GO Ref *4,065 10 am C Ehlers Quarles & Brady 21-31 --- --- --- --- --- BQ 28-Jan
Waukesha Co Area Tech Coll WI GO Prom 2,900 9:30 am C Baird Quarles & Brady 21-25 --- --- --- --- --- BQ 21-Jan
Wednesday, February 12 Greenland SD #95 AR Ref *5,635 11 am C First Sec Beardsley Friday Eldredge 20-38 --- Aa2 --- --- --- BQ 6-Feb
Glastonbury (Town) CT GO Ref *8,205 11:30 am E Phoenix Advisors Day Pitney 21-25 --- Aaa AAA --- --- --- 5-Feb
Des Moines IA GO Ref *29,525 10 am C PFM Fin Advisors Ahlers & Cooney 21-32 --- --- AA+ --- --- --- 5-Feb
Urbana IA GO Urban Renewal (Tax) *500 11 am C Speer Financial Dorsey & Whitney 22-28 --- --- --- --- --- --- 31-Jan
Urbana IA GO Corp Purp *950 10:30 am C Speer Financial Dorsey & Whitney 21-30 --- --- --- --- --- BQ 31-Jan
Speedway Sch IN GO *1,625 11 am E Stifel Nicolaus Ice Miller 21-25 --- --- AA+ --- --- BQ 5-Feb
Barbourville ISD Fin Corp KY Sch Bldg Ref *1,345 11:30 am E Ross Sinclaire Steptoe & Johnson 21-30 --- --- --- --- --- BQ 6-Feb
Amount Time of Bank- Latest Issuer St Description ($000s) Sale Financial Adviser Legal Opinion Maturing Insurer Mdy’s S&P Fitch KBRA Qual. Details
Competitive Bond Offerings *Preliminary and subject to change. SHADED LISTINGS ARE NEW.
Compiled by IHS Markit
A letter “P” signifies that a link to the POS is on the Bond Buyer Online's Competitive Bond Offering Calendar.
This monitor signifies the Notice of Sale is available on www.bondbuyer.comTo Report or Obtain Information
Competitive / Negotiated Offerings
Joycelyn Gumbs 212-849-3870
Priya Khandai 646-679-3128
Competitive / Negotiated Sales Results
Ruth-Ann Medina 212-849-3873
Anthony Andino 212-849-3868A “+” under Insurer in the Negotiated Bond Offerings and Negotiated Note Offerings signifies that insurance is available.
Capital Trust Agy FL Rev (Tax) 2,085 Stifel Nicolaus --- --- --- --- --- --- 7-Feb
Capital Trust Agy FL Rev 32,800 Stifel Nicolaus --- --- --- --- --- --- 7-Feb
Hawaii Dept Budget & Fin HI Rev 8,965 Stifel Nicolaus --- --- --- --- --- --- 7-Feb
Honolulu (City & County) HI GO 295,730 BofA Securities --- --- --- --- --- --- 6-Feb
Clarinda IA Bond 1,500 D.A. Davidson --- --- --- --- --- --- Today
Amount First Issuer St Description ($000s) Lead Manager Financial Adviser Insurer Mdy’s S&P Fitch KBRA Appeared
Negotiated Bond Offerings Tentative dates for negotiated sales of $1 million or more. A “+” under Insurer signifies that insurance is available. SHADED LISTINGS ARE NEW.
Compiled by IHS Markit
East Meadow UFSD NY Sch Dist 16,355 10:30 am E Capital Markets Adv Hawkins Delafield 21 --- --- --- --- --- --- 6-Feb
Garden City Vlg NY Bond Antic 35,750 11 am E Capital Markets Adv Hawkins Delafield 21 --- --- --- --- --- --- 5-Feb
New Rochelle NY Bond Antic 13,087 11 am E Capital Markets Adv Norton Rose 21 --- --- --- --- --- --- 3-Feb
Port Chester Vlg NY Bond Antic 4,958 11 am E Capital Markets Adv Orrick Herrington 21 --- --- --- --- --- BQ 5-Feb
Napoleon OH Var Purp GO 5,852 11 am E Sudsina & Assoc Squire Patton 21 --- --- --- --- --- BQ 4-Feb
Richland County SC GO Bond Antic *125,000 11 am E First Tryon Advisors Parker Poe 21 --- MIG1 SP-1+ --- --- --- 4-Feb
Wednesday, February 12 New York City NY GO (Tax) *72,750 10:45 am E Public Resources Norton Rose 20 --- --- --- --- --- --- 7-Feb
Sag Harbor Vlg NY Bond Antic 550 11 am E Munistat Services Hawkins Delafield 20 --- --- --- --- --- BQ 7-Feb
Thursday, February 13 East Brunswick Twp NJ Bond Antic 18,900 11:30 am E Phoenix Advisors McManimon Scotland 21 --- MIG1 --- --- --- --- Today
Eastampton Twp NJ Bond Antic 2,566 11:30 am E Phoenix Advisors McManimon Scotland 20 --- --- --- --- --- BQ 7-Feb
South Bound Brook Borough NJ Bond Antic 597 11:15 am E Municipal Official GluckWalrath 21 --- --- --- --- --- BQ Today
South Bound Brook Borough NJ Bond Antic (Tax) 1,492 11 am E Municipal Official GluckWalrath 21 --- --- --- --- --- --- Today
Freeport Vlg NY Bond Antic (Tax) 700 11 am E Liberty Capital Svcs Hawkins Delafield 20 --- --- --- --- --- --- 7-Feb
Freeport Vlg NY Bond Antic 1,890 11 am E Liberty Capital Svcs Hawkins Delafield 20 --- --- --- --- --- --- 7-Feb
Merrick UFSD NY Bond Antic 19,900 11 am E Capital Markets Adv Hawkins Delafield 21 --- --- --- --- --- --- 7-Feb
Union (Town) NY Bond Antic 6,000 10:30 am E Fiscal Adv & Mkt Orrick Herrington 21 --- --- --- --- --- BQ 7-Feb
Wednesday, February 19 Sherman Vlg NY Bond Antic 300 10:45 am E Fiscal Adv & Mkt Trespasz & Marquardt 21 --- --- --- --- --- BQ 6-Feb
011_BB021020 11 2/7/2020 3:44:17 PM
12 The Bond BuyerMonday, February 10, 2020
Iowa Ctrl Comm Coll IA Bond 8,005 D.A. Davidson --- --- --- --- --- --- Today
Iowa Fin Auth IA Rev 204,770 Citigroup PFM Fin Advisors --- --- --- AAA --- 7-Feb
Aurora East SD #131 IL GO Sch Ref 20,515 Loop Capital Raymond James AGM --- --- --- --- 3-Feb
Aurora East SD #131 IL GO Sch 30,795 Loop Capital Raymond James AGM --- --- --- --- 3-Feb
Cook Co Comm Cons SD #59 IL GO Sch 31,345 Raymond James --- --- --- --- --- --- 4-Feb
Rantoul SD #137 IL GO Sch Ref 4,615 Stifel Nicolaus --- BAM --- --- --- --- 7-Feb
E Chicago Multi Sch Bldg IN First Mtg (Tax) 9,165 Piper Sandler --- --- --- --- --- --- 7-Feb
Amount First Issuer St Description ($000s) Lead Manager Financial Adviser Insurer Mdy’s S&P Fitch KBRA Appeared
Negotiated Bond Offerings Tentative dates for negotiated sales of $1 million or more. A “+” under Insurer signifies that insurance is available. SHADED LISTINGS ARE NEW.
Compiled by IHS Markit
New Issues
012_BB021020 12 2/7/2020 3:44:18 PM
13www.bondbuyer.comMonday, February 10, 2020 New Issues
Public Fin Auth UT Sch Rev 20,455 Stifel Nicolaus --- --- --- --- --- --- 28-Oct
Amount First Issuer St Description ($000s) Lead Manager Financial Adviser Insurer Mdy’s S&P Fitch KBRA Appeared
Negotiated Bond Offerings Tentative dates for negotiated sales of $1 million or more. A “+” under Insurer signifies that insurance is available. SHADED LISTINGS ARE NEW.
Source: Thomson Reuters (based on data available on January 31, 2020).All dollar amounts are in millions of dollars. Figures are based on issues maturing in 1.09 years or longer. Private placements and municipal forward sales are included, but short-term notes maturing in less than 1.088 years and remarketings of variable-rate bonds are excluded. Taxable bonds issued directly by electric cooperative utilities are included.Insurance figures represent only the insured portion of issues. Other Enhancements include certificates of deposit, collateralization, guaranteed investment contracts, private mortgage insurance, and surety bonds.The purpose categories are defined as follows:Development: industrial development, economic development, nongovernment office buildings.Education: primary and secondary education, higher education, student loans.Electric power: public power utilities.Environmental Facilities: solid waste disposal, resource recovery, pollution control, recycling.Health Care: hospitals, nursing homes, continuing-care communities, assisted living, general medical.Housing: single-family housing, multifamily housing.Public Facilities: government buildings, fire and police stations, jails and prisons, civic and convention centers, museums and libraries, stadiums and sports complexes, theaters, parks, zoos and beaches, other recreation.Transportation: airports, seaports and marine terminals, toll roads, highways and streets, bridges, tunnels, parking facilities, mass transit.Utilities: water and sewer, gas, flood control, sanitation, combined utilities, miscellaneous utilities.General Purpose: general purpose, veterans (other than housing), agriculture, churches, temples, and mosques, unknown.
The 30-Day Visible Supply reflects the total dollar volume of bonds to be offered at competitive bidding and through negotiation over the next 30 days. It includes issues scheduled for sale on the date listed along with anticipated offerings listed in that day’s “Competitive Bond Offerings” and “Negotiated Bond Offerings” tables published on BondBuyer.com.
Current Previous 2020 2020Weekly 2/6/20 1/30/20 High Date Low Date
This week’s volume excludes sales expected to close on Friday. Next week’s estimated 844 excludes bond offerings on a “day to day”schedule.
Market Indicators Dollar amounts are in millions
Market Statistics
Competitive Negotiated Total ($000s) ($000s) ($000s)
Competitive Negotiated Total ($000s) ($000s) ($000s)
Visible Supply
The 30-day visible supply is compiled daily from The Bond Buyer’s Competitive and Negotiated Bond and Note Offerings calendars. It reflects the dollar volume of bonds expected to reach the market in the next 30 days. Issues maturing in 13 months or more are included. The 30-day visible supply of competitive bonds has been reported since 1927, while the negotiated supply has been reported since 1971.
Figures are as of 3 pm Eastern time Feb. 7, 2020. Yields represent the fair market offer side for most liquid and available credits in each ratings category as determined by MMD. “Insured” primarily represents bonds with the strongest available enhancement available, assuming a “A” rated underlying. The above data, provided by Thomson Reuters Municipal Market Data ([email protected]), is the copyright property of Thomson Reuters and distribution is strictly prohibited. Visit www.tm3.com.
Municipal Market Data General Obligation YieldsVisible Supply Increases
30Y — 2 .38% due 11/2049 . . . . . . 107 .080/100 105 .27+/29+ 2 .048Plus signs indicate an additional one–64th. If no bid is available, the yield shown represents the yield at the last trade.–
Barclays Capital Long Treasury Bond Index Index Value Yield Index Total
Yesterday Prev. Day Change Yesterday Prev. Day Change Return
Index values reflect the compounded total return growth of each respective market, with values set at 100 at inception dates. Total return equals the sum of price change, interest income, and reinvestment income.Source: Merrill Lynch & Co.
(1) General obligation bonds maturing in 20 years are used in compiling these indexes. The 20-bond index has an average rating equivalent to Moody’s Aa2 and S&P’s AA, while the 11-bond index is equivalent to Aa1 and AA-plus. (No average Fitch rating is provided because Fitch does not rate one of the bonds.) The 11 bonds used in the higher-grade index are marked with an asterisk.
Moody’s/S&P/Fitch Moody’s/S&P/Fitch Moody’s/S&P/FitchBaltimore, Md. Aa2 / AA / NR *Massachusetts. Aa1 / AA / AA+ Pennsylvania. Aa3 / A+/ AA–California Aa2 / AA– / AA Memphis, Tenn. Aa2 / AA / AA *Phoenix, Ariz Aa1 / AA+ /AAA*Denver, Colo. Aaa / AAA / AAA Miami-Dade Co., Fla. Aa2 / AA / AA *Seattle, Wash. Aaa / AAA / AAA*Florida Aaa / AAA / AAA Milwaukee, Wis. A1 / AA / AA *South Carolina Aaa / AA+ / AAA*Georgia Aaa / AAA / AAA New York City Aa1 / AA / AA *Texas Aaa / AAA / AAAHouston, Tex. Aa3 / AA / AA *New York State Aa1 / AA+ / AA+ *Washington Aaa / AA+ / AA+*Maryland Aaa / AAA / AAA North Carolina Aaa / AAA / AAA
(2) Revenue bonds maturing in 30 years are used in compiling this index. It has an average rating equivalent to Moody’s A1 and S&P’s A-plus. (No average Fitch rating is provided because Fitch does not rate seven of the bonds.) The bonds and their ratings are: Moody’s S&P FitchAtlanta, Ga., airport (AMT) .................................................................................................................................................................... Aa3 AA– AA–California Housing Finance Agency, multi-unit rental (AMT) ................................................................................................................. A1 AA+ NRConnecticut Housing Finance Authority ................................................................................................................................................ Aaa AAA NRDallas-Fort Worth International Airport Board, Tex. (AMT).................................................................................................................... A1 A+ AEnergy Northwest (formerly WPPSS), Wash., power revenue .............................................................................................................. Aa1 AA– AAIllinois Health Facilities Authority (Northwestern Memorial Hospital) ................................................................................................... Aa2 AA+ NRIllinois Housing Development Authority mtg. revenue bonds ............................................................................................................... Aa2 AA NRIntermountain Power Agency, Utah ....................................................................................................................................................... A1 A+ AAJEA (formerly Jacksonville Electric Authority), Fla. electric revenue ..................................................................................................... A2 A+ AAKentucky Turnpike Authority ................................................................................................................................................................. Aa3 A– NRLos Angeles Department of Water and Power, Calif., electric revenue .................................................................................................. Aa2 AA AAMassachusetts Port Authority (AMT) .................................................................................................................................................... Aa2 AA AAMEAG Power (formerly Municipal Electric Authority of Georgia) .......................................................................................................... A1 A A–Nebraska Public Power District, power supply ...................................................................................................................................... A1 A+ A+New Jersey Turnpike Authority, turnpike revenue ................................................................................................................................. A2 A+ ANew York State Local Government Assistance Corp., revenue .............................................................................................................. Aa1 AA+ NRNew York State Power Authority, general purpose ................................................................................................................................ Aa1 AA AANorth Carolina Municipal Power Agency No. 1, Catawba electric revenue ............................................................................................ A2 A APort Authority of New York and New Jersey, consolidated (AMT) ......................................................................................................... Aa3 AA– AA–Puerto Rico Electric Power Authority .................................................................................................................................................... Ca D DSalt River Project Agricultural Improvement and Power District, Ariz., electric revenue ....................................................................... Aa1 AA NRSouth Carolina Public Service Authority, electric revenue ..................................................................................................................... A2 A A–Texas Municipal Power Agency ............................................................................................................................................................. A1 A+ A+Virginia Housing Development Authority .............................................................................................................................................. Aa1 AA+ NR
(3) Yield on the most current U.S. Treasury 10-year note and 30-year Treasury bond. (Source: Thomson Reuters)
Bond Buyer IndexesAverage Municipal Bond Yields — Compiled Weekly
Market Statistics
Latest Previous Year 12-Month Week Week Ago High Low20-Bond Index 2.53 2.47 4.23 4.24 2.4710-Year Treasury Note 1.64 1.57 2.65 2.73 1.5130-Year Treasury Bond 2.11 2.04 2.99 3.10 1.97Basis Pt Spread to Note –89.00 –90.00 –158.00 –75.00 –158.00BBI as % of Note 154.27 157.32 159.62 203.00 141.44Basis Pt Spread to Bond –42.00 –43.00 –124.00 –30.00 –124.00BBI as % of Bond 119.91 121.08 141.47 156.42 113.27
Weekly Yields of 20-Bond GOIndex and Treasury Securities
NOTE : We have no new bond after January 15 pricings.
Due to this, the list of 40 bonds used in the Municipal Bond Index was not revised after the January 31 pricings. The list will be revised at the next regularly scheduled revision on February 14.
As a result, the coefficient remains at 1.068, the average coupon rate at 4.11%, the average par call date is July 3, 2026 and the average maturity date is May 18, 2046.
