Last Tuesday, Guam’s Consolidated Commission on Utilities took a bold step by approving a staggering $270 million in bonds for the Guam Waterworks Authority (GWA). With an anticipated all-in true interest cost of 4.91%, as announced by General Manager Miguel Bordallo, one must question the prevailing wisdom behind such a significant financial maneuver. While the
Bonds
In the dynamic landscape of municipal finance, the forthcoming $900 million sales tax revenue bond issue by a Utah debt issuer could be viewed as both a beacon of hope and a source of trepidation for Salt Lake City. Designed to fund renovations at Delta Center—a site that has evolved from a basketball-exclusive arena into
Chicago’s upcoming issuance of $517.95 million in general obligation bonds, as highlighted by Fitch Ratings, serves as a painful indicator of the city’s ongoing fiscal turmoil. With a negative outlook assigned to the city’s A-minus issuer default rating, it is clear that the city is straddling a precarious financial divide. Fitch’s assessment revolves around Chicago’s
The landscape of municipal bonds is shifting under our feet like sand, a phenomenon that should give financial conservatives and center-right investors considerable pause. Recent reports highlight the intricate relationship between municipal yields and broader market dynamics. Despite the apparent stability in the municipal bond market, various undercurrents—like rising U.S. Treasury yields and substantial outflows
For over a decade, investors have been overwhelmingly captivated by a simplistic narrative: the allure of 5% callable municipal bonds. Market sentiment, fueled by the seductive returns of these high-yield instruments, has essentially led to a consensus that such bonds are a safeguarded bet, perpetually shielded from downturns due to their premium price. However, this
Recent events in the municipal bond market are signaling an unsettling trend that investors must pay attention to. Municipal bonds, which are usually seen as safe investments, have begun to exhibit a worrying weakness even as U.S. Treasury yields slip. As of late Thursday, key ratios suggested that the allure of these bonds is somewhat
The recent downgrade of the U.S. credit rating from AAA to Aa1 by Moody’s has sent shockwaves through financial markets, yet its immediate impact is less devastating than one might expect. As we dissect this critical development, it’s essential to assess not only the downgrade itself but also its potential repercussions for municipal bonds and
Recent weeks have exposed the municipal bond market to significant uncertainty as President Trump’s tariff pronouncements rippled throughout various sectors. However, the true narrative reveals a resilient bond market that, despite the chaos, has shown unexpected strength and adaptability. Jamie Doffermyre of Truist Securities underscored this recovery at the Southeast Public Finance conference, indicating that
In an audacious initiative designed to reshape the medical landscape, Harris County Hospital District, the principal healthcare provider for Texas’s largest county, has announced a groundbreaking decision to issue $839.5 million in limited tax bonds. This strategic maneuver is a first step towards tapping into the ambitious $2.5 billion debt authorization approved by voters in
Chicago’s recent call for qualifications (RFQ) regarding underwriting services marks a pivotal moment in the city’s financial dealings. Released on April 30 and setting a deadline for responses by June 18, this move is not just a routine bureaucratic process; it signifies Chicago’s substantial shifts in its economic strategy amid evolving market dynamics. The city