Municipal Bond News
• PREPA has reached a prelim agreement with bondholders; there will be two classes of bonds, one valued at 67.50 and the other will be tied to the turnaround of the island. I believe this is a much better plan than the one discussed initially, and the bonds, as well as the insurance companies, should rally on this news.
- Many governors in the US are recommending a 1.4B increase in higher education spending for fiscal 2019; this is 1B more than last year. With this many public universities have indicated that they will continue to raise tuition, and there are many signs that state aid will not provide enough money for those who wish to attend college.
- Benchmark state 10-year yields a
• NJ is issuing a 600MM new money deal to help fiancée construction of a replacement bride of the gateway program and help end railway congestion into NYC. The bonds will be paid with fees from the bridge as well as the overall transportation authority of the state; this will create some liquidity in the system.
• CO AA bond rating was upgraded to Stable by S&P yesterday after it adopted pension reforms earlier in the year.