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The tax break for municipal bond investors is at risk as Republicans, led by President-elect Donald Trump, consider cutting corporate taxes and potentially eliminating the federal income tax. The muni tax-exemption, costing the US government less than $40 billion annually, is seen as a potential revenue source to offset proposed tax cuts. While there is bipartisan support for the muni tax-break, the potential changes could impact infrastructure financing and increase costs for state and local governments. The future of the tax exemption remains uncertain as lawmakers weigh the implications of altering this long-standing feature of the US public finance market. [Extracted from the article]

Million Air, a luxury aviation company, is borrowing $120.5 million to expand its operations in Austin and Marathon, Florida, to meet the demand for private jet facilities. The company plans to double the size of its Austin facilities and add enhancements in Florida using funds from a municipal bond offering. Private jet activity has been on the rise, and the expansion is expected to significantly increase Million Air's earnings. The company, founded in 1984, is one of the largest fixed-base operator chains in the industry, servicing over 1,000 aircraft across the US, Canada, and the Caribbean. [Extracted from the article]

The recent selloff in the municipal bond market has created a buying opportunity, according to analysts from Barclays and JPMorgan. Muni yields rose sharply earlier in the week due to a strong economy and reduced expectations for interest rate cuts, but rebounded on Thursday. Despite this, the 10-year benchmark yield remained higher than at the beginning of the week, making it the worst week for muni bonds in a year. Analysts suggest that current market levels present value for investors, with inflows into muni bond ETFs supporting a rally on Thursday. Barclays and JPMorgan strategists anticipate a positive performance for munis towards the end of 2024. [Extracted from the article]

The Metropolitan College of New York is planning to sell real estate in lower Manhattan to meet its financial obligations and avoid defaulting on debt payments. The college, facing declining enrollment, is looking to sell part of its Manhattan campus and consolidate operations in other locations. This move is part of a trend among struggling US colleges to sell off assets like campus buildings to raise funds. [Extracted from the article]

Municipal bonds are experiencing a significant drop in prices due to concerns about the Federal Reserve's rate cuts, leading to the worst day in over two years for top-rated 10-year municipal bond yields. The market is reacting to a sudden increase in rates and an influx of supply, with long-term municipal bond sales up by 43% this year. Analysts attribute the recent sell-off to muni bonds becoming expensive compared to Treasuries and the anticipation of heavy supply in the coming weeks. [Extracted from the article]

Cash-strapped colleges in the US are facing financial challenges due to declining enrollment and rising costs. To address these issues, many schools are selling off valuable assets like art, mansions, and real estate. While these sales provide immediate relief, they may not offer long-term solutions and can lead to backlash from students, faculty, and the wider community. The College of Saint Rose and Valparaiso University are examples of schools that faced closure or criticism for selling cherished assets. Despite the financial pressures, some institutions like the New School in New York City are strategically selling assets to strengthen their financial position for the future. [Extracted from the article]

S&P Global Ratings has warned that North Carolina municipalities like Asheville and Blowing Rock, as well as communities in Tennessee, may face credit downgrades following Hurricane Helene. The storm caused flooding in the US South, leading to concerns about long-term economic impacts, population displacement, and infrastructure damage. S&P placed a dozen municipalities on CreditWatch with negative implications, including Asheville, which currently holds a AAA rating. [Extracted from the article]

Fidelity Investments is planning to convert two of its municipal-bond mutual funds into exchange-traded funds (ETFs), reflecting the growing popularity of the $10 trillion US municipal bond market. The two funds affected are the Fidelity Municipal Bond Index Fund and the Fidelity Municipal Core Plus Bond Fund. Fidelity has previously converted six of its mutual funds into ETFs and this trend is becoming more common in the municipal bond market. Muni ETFs have seen significant growth, with over 100 such ETFs currently tracked by Bloomberg, as investors seek low-cost investment options. [Extracted from the article]

Spring Hill College, the oldest Catholic educational institution in the southeast of the US, has reached a deal with its biggest creditor, Nuveen, to give it more time to improve its finances and avoid default. The college entered into a forbearance agreement with UMB Bank, the trustee for bondholders like Nuveen, after breaching a covenant. As part of the agreement, Spring Hill College must raise $2 million in donations by July 31 and $5 million by October 31. The college is also evaluating options for selling non-core real estate and pursuing other income sources and partnerships. [Extracted from the article]

The municipal bond market is experiencing its best third quarter since 2011, with a return of approximately 2.6% during the three-month period. Despite a surge in new bond sales, investors are still buying the bonds to take advantage of the higher yields before they decrease due to the Federal Reserve cutting interest rates. The market's strong performance in September is surprising, as it is typically one of the worst months for performance. Continued inflows into mutual funds and ETFs have helped absorb the influx of new issues, and compared to other fixed-income securities, municipal bonds are considered a good bargain. The rally is expected to continue in the last two months of the year with less supply. [Extracted from the article]

Kamala Harris is traveling to Arizona and Nevada to address her campaign's need for support among Latino voters and union members, two important demographics in these swing states. She plans to focus on immigration and the economy, two areas where Donald Trump's campaign has gained traction. Harris will visit the US-Mexico border in Arizona and call for tougher border security measures. Despite leading in recent polls, Trump still holds an advantage over Harris when it comes to handling immigration. Republicans are also targeting union members in Nevada by emphasizing concerns over inflation. The race in both states is close, with ads flooding the airwaves and billboards targeting various issues. Democrats hope that reproductive rights will mobilize voters, while Republicans are focusing on Trump's messaging on immigration and the economy. [Extracted from the article]

Buffalo Bills fans have purchased municipal bonds to help finance the construction of a new $1.7 billion stadium for the NFL team. The bonds offer high yields and are exempt from state and federal income taxes, making them an attractive investment for fans in New York, which has high tax rates. Roughly 100 retail buyers placed orders for the bonds, totaling about $2.7 million of orders on the $110 million sale. The bonds are rated AA by S&P Global Ratings and have strong demand, particularly for short-dated maturities. [Extracted from the article]

The municipal bond market is experiencing a boom in mega-deals, with sales over $1 billion showing no signs of slowing down. State and local governments are rushing to raise cash ahead of the presidential election, resulting in sales reaching an all-time high of $325 billion so far this year. The bond market is rallying ahead of expected interest-rate cuts from the Federal Reserve, and there is a race to complete deals before the election potentially disrupts markets. Despite the election, mega deals may continue after the election, as Connecticut plans to sell $1 billion of bonds later in the year. [Extracted from the article]

The American Sustainable Business Council has filed a lawsuit against Texas officials, including Comptroller Glenn Hegar and Attorney General Ken Paxton, in an attempt to block a law that restricts state investments with financial firms based on their energy policies. The law, known as Senate Bill 13, has been criticized for being unconstitutional and for infringing on free speech and association rights. The American Sustainable Business Council argues that the law harms its members and prevents them from competing for business in Texas. Similar anti-ESG laws in other states have also faced legal challenges. [Extracted from the article]

The University of the Arts, a private college in Philadelphia, is facing a demand from its bondholders to repay over $50 million in debt. The bondholders have sent a notice of default, acceleration, and demand for payment to the university. The closure of the school in June came as a surprise and led to protests, as enrollment had significantly dropped in recent years. Fitch Ratings downgraded the university's rating after the closure announcement, and the next bond payment is due on September 15. [Extracted from the article]

Raymond James Financial Inc. has risen to seventh place in the rankings of municipal-bond underwriters, its highest position in at least a decade. This comes after large banks like Citigroup Inc. and UBS Group AG withdrew from the muni market. Raymond James has been able to gain market share by hiring nearly 60 people for its public-finance division over the past three years. Despite its ascent, Raymond James manages less than half of the long-term debt sales handled by the largest underwriter, Bank of America Corp. However, it trails only two firms in the number of transactions managed this year and has attracted major clients, such as Main Street Natural Gas Inc. [Extracted from the article]

The municipal bond market is currently offering attractive terms for investors, with state and local government bond yields at their cheapest since late 2023. AAA municipal bonds are now offering about 70% of the yield on similar Treasuries, making them more attractive. This surge in supply is due to state and local governments rushing to issue new bonds before the November presidential election to avoid potential market volatility. Despite the higher yields, experts believe that the next two months could offer the best opportunity to buy bonds this year. [Extracted from the article]

The American Musical and Dramatic Academy, a drama and arts school with campuses in New York City and Los Angeles, is facing a penalty for breaching an agreement with its municipal bondholders. The school failed to maintain a cash reserve that would last three months, as required by the agreement. As a result, the academy will have to pay higher interest rates between 12.25% and 14.5% on its debt. This move by bondholders is rare in the municipal market, and it may worsen the school's financial situation. The academy has struggled in recent years, and its enrollment has been declining. [Extracted from the article]

Colleges and universities in the United States are facing a significant infrastructure backlog, with estimates ranging from $750 billion to $950 billion over the next decade. Despite selling billions of dollars worth of debt for new projects, Moody's Ratings reports that schools still need to make significant progress in reducing deferred maintenance and upgrading facilities. Sales of bonds for campus projects have increased by 97% to nearly $22 billion in 2024, but this is still a fraction of what is needed. Financial strains may limit schools' ability to improve their facilities, which could result in a loss of competitive edge and potential closures. The increase in bond sales is attributed to growing competition among colleges to attract high school seniors, as the number of graduates is projected to decline in the coming years. [Extracted from the article]

A persistent drought in Texas has caused a small town called Clyde to default on its water system debt. The city, located between Dallas and Midland, informed investors that it couldn't make a debt payment due in August. As a result, its bond insurers were asked to cover the payment. This rare instance of climate-related default has led to a downgrade in the city's credit rating. The drought has also affected the town's water sales and led to the implementation of water usage restrictions. While bondholders will be protected due to insurance, this situation highlights the risks associated with extreme weather events in the municipal bond market. [Extracted from the article]

Rockefeller Asset Management is entering the municipal bond ETF market by launching its first actively managed fixed income ETFs. The funds will focus on lower-rated bonds and will be managed by portfolio managers who joined from Invesco Ltd. Demand for high-yield municipal bonds has been strong, with returns outperforming US corporate high-yield bonds. The new ETFs will provide investors with a low correlation to equities, potentially serving as a buffer during stock market weakness. The company is also launching state-specific ETFs for California and New York, appealing to investors seeking to shield their income from high state taxes. [Extracted from the article]

CIM Group, a real estate developer, is using the municipal-bond market to finance a $4.2 billion project in downtown Atlanta. The project, called Centennial Yards, aims to transform a defunct rail yard into apartments, shops, hotels, and a data center. JPMorgan Chase & Co. is providing a $175 million loan for part of the project and serving as the underwriter for two municipal debt deals totaling $556 million. The bonds are unrated and will only be sold to qualified institutional buyers. The project has faced opposition, but CIM remains optimistic about its success. [Extracted from the article]

Texas Comptroller Glenn Hegar has added NatWest Group Plc to a list of companies that his office considers to boycott the fossil fuels industry. The Edinburgh-based bank was added to the list because of its policy to not finance oil and gas exploration, extraction, and production after 2025. This list is a result of a state law that requires the comptroller to compile a list of financial firms boycotting the fossil fuels industry. Companies on the list may face consequences such as the sale of their holdings by state entities and ineligibility for certain public contracts. [Extracted from the article]

Bank of America has been rejected by Louisiana State Treasurer John Fleming in its application to become a state depository and fiscal agent for the state. Fleming cited concerns that the company is denying banking services to certain clients, such as religious organizations and gunmakers. This rejection is part of a larger trend of GOP-led states targeting Wall Street banks over their social policies. However, Bank of America provides services to over 100,000 nonprofits associated with religious organizations, and the company claims that religious views are not a factor in account closings. [Extracted from the article]

Wall Street banks, including Wells Fargo, Bank of America, and JPMorgan Chase, have been approved by Louisiana's bond commission to be part of a group of managers for debt deals. This decision was made despite concerns about the banks' climate change commitments and their membership in the Net-Zero Banking Alliance, which has faced criticism from Republican politicians. Louisiana has previously targeted large Wall Street banks over their positions on guns and fossil fuels. State officials will continue to monitor the banks' behavior and report any adverse findings to the commission. [Extracted from the article]

Erlanger Health, a hospital system in Chattanooga, Tennessee, has postponed a $316 million municipal bond sale due to a recent surge in yields. The deal, which was marketed to investors with spreads ranging from 58 to 70 basis points over the benchmark, was put on hold after receiving inadequate demand. The hospital had planned to use the proceeds to refinance outstanding debt. The decision to delay the transaction was made due to market volatility and falling yield expectations. [Extracted from the article]

Erlanger Health, a hospital system in Chattanooga, Tennessee, has postponed a $316 million municipal bond sale due to weak demand caused by surging yields. The deal was marketed to investors with spreads ranging from 58 to 70 basis points over the benchmark, but inadequate demand led to the delay. The hospital had planned to use the proceeds to refinance outstanding debt. This delay comes as municipal bonds experienced a drop in prices and a surge in yields. [Extracted from the article]

Wall Street banks, including Wells Fargo, Bank of America, and JPMorgan Chase, have been approved by Louisiana's bond commission to be part of a group of managers for debt deals. This decision was made despite concerns about the banks' climate change commitments and their membership in the Net-Zero Banking Alliance, which has faced criticism from Republican politicians. Louisiana has previously targeted large Wall Street banks over their positions on guns and fossil fuels. State officials will continue to monitor the banks' behavior and report any adverse findings to the commission. [Extracted from the article]

The municipal bond market is experiencing a surge in new sales, with $269 billion in sales this year, a 38% increase from the previous year. This increase in supply has led to a crowded market, making it difficult for investors to obtain the securities they want. As a result, investors are getting creative in their search for value, looking for cheaper debt or exploring less popular areas. Some investors are also shifting down the credit spectrum to capture higher yields. Money managers at Vanguard Group Inc. are favoring the secondary market, as new issue sales have become too expensive. Despite the challenges, certain governments are benefiting from the strong demand, allowing them to achieve lower borrowing costs. BlackRock Inc. is looking for gaps in demand for new deals, while DWS Group is favoring cash and muni closed-end funds. Overall, the crowded market is leading to frustration among investors, but they are finding ways to navigate the situation. [Extracted from the article]

Goldman Sachs Asset Management is launching four new municipal-bond exchange-traded funds (ETFs) in the $129 billion municipal debt market. These actively-managed funds include one focused on ultra-short municipals and another that invests in tax-exempt debt sold by New York borrowers. The demand for ETFs has increased, as they are often lower-cost than mutual funds. Inflows into muni ETFs in 2024 have reached approximately $5.4 billion, with June recording the highest influx of over $2 billion. Goldman Sachs aims to cater to client demand and leverage its strong record of actively-managing muni funds. [Extracted from the article]

V2 Municipal Capital, a new firm founded by former executives from Preston Hollow Community Capital Inc., will exclusively source high-yield municipal bonds for alternative asset manager Fundamental Advisors. The firm, led by Charlie Visconsi and Ron Van Den Handel, will focus on investment opportunities in health care, housing, education, and infrastructure. Visconsi previously worked at Morgan Stanley and served as co-head of public finance, while Van Den Handel held senior roles at Deutsche Bank AG and Raymond James Financial Inc. [Extracted from the article]

Kansas City Chiefs wide receiver Marquise "Hollywood" Brown has launched a real estate firm called Platinum Pro Capital, which will specialize in Caribbean and other resort properties. The company aims to cater to athletes and high-net worth individuals. Brown's own financial priorities were influenced by an injury he sustained in college, leading him to focus on real estate investments. Other NFL players, such as Chicago Bears rookie quarterback Caleb Williams and football star Aaron Rodgers, have also started their own investment firms. Platinum Pro Capital has already backed a luxury condo development in the US Virgin Islands and is renovating a resort in Grand Bahama Island, with plans for future projects in south Florida and Costa Rica. Brown hopes that other players in the league will invest in the company's first fund, Platinum Pro Fund 1, and take advantage of the opportunity to stay in the vacation properties for free during the off-season. [Extracted from the article]

Wells Fargo's head muni strategist, Vikram Rai, warns that the tax-exempt status of municipal bonds sold by state and local governments could be at risk regardless of the outcome of the US elections in November. Both Democrats and Republicans have proposed changes to the tax-exempt feature of these bonds in the past. However, Rai notes that there is currently no threat to the tax exemption of existing bonds. He also states that the value of existing muni debt would increase if access to tax-exempt bonds were limited. [Extracted from the article]

New York Life Investment Management has acquired six municipal-bond funds from Aquila Investment Management, which specialize in investing in debt from specific states. The funds, with approximately $1.2 billion in assets, have underperformed in recent years due to the Federal Reserve's interest-rate increases. MacKay Municipal Managers, a part of New York Life Investments, will now oversee these funds. Aquila will also cease providing business management and distribution services to the Hawaiian Tax-Free Trust and has agreed to sell a corporate bond fund and equity fund to Cantor Fitzgerald Investment Advisors. [Extracted from the article]

Marymount University, a small Catholic college near Washington, DC, is taking drastic measures to improve its financial situation. The school has depleted one-third of its endowment, cut academic programs, and invested in dorm renovations to attract more students. Marymount's actions reflect the challenges faced by many colleges in the US, including declining high school graduate numbers and rising tuition costs. While the school has seen a slight increase in enrollment, bondholders and rating analysts remain skeptical about its long-term financial stability. Marymount's endowment, which stood at $32 million in 2023, has also been used to support the school's operations and real estate ventures. [Extracted from the article]

Municipal bond sales are increasing rapidly as issuers anticipate lower borrowing costs due to the Federal Reserve potentially cutting interest rates in September. US states and local governments are expected to sell $16.1 billion of debt in the next 30 days, which is significantly higher than the 12-month average. Factors contributing to this surge include the need to finance new infrastructure and the rush to refinance Build America Bonds with tax-exempt debt. Despite the increase in supply, the market has been able to absorb it, and muni bonds have earned a similar return to Treasuries this year. Detroit's recent bond sale was well received, with pricing tighter than bonds sold a year ago, thanks to the city's credit rating upgrade. Demand for BBB-rated bonds is high, as seen in the Detroit and Guam Power Authority issuances. [Extracted from the article]

Municipal bond sales are increasing rapidly as issuers anticipate lower borrowing costs due to the Federal Reserve potentially cutting interest rates in September. US states and local governments are expected to sell $16.1 billion of debt in the next 30 days, which is significantly higher than the 12-month average. Factors contributing to this surge include the need to finance new infrastructure and the rush to refinance Build America Bonds with tax-exempt debt. Despite the increase in supply, the market has been able to absorb it, and muni-bonds have earned a similar return to Treasuries this year. [Extracted from the article]

BlackRock, the world's largest asset management company, has hired Danner Bethel as director of US state and local government affairs for the southern region. This move comes as the company faces criticism from Texas Republicans and is on a list of companies that the state's comptroller says boycott the fossil fuels industry. Despite Texas' efforts to crack down on ESG investment practices, BlackRock still sees the state as a key priority and is backing an upstart Texas stock market. Bethel's role will involve delivering expertise and resources to policymakers in the region. [Extracted from the article]

Portfolio trading, a tactic that allows investors to buy or sell bundles of bonds at once, is becoming popular in the municipal bond market. This method has the potential to increase liquidity in the market for state and local government debt, which often has low trading activity. Portfolio trading has been successful in the corporate bond market, reducing transaction costs by over 40%. While there are challenges to implementing portfolio trading in the municipal bond market, such as the large number of active bonds and the difficulty of shorting municipals, the benefits of increased liquidity are apparent. [Extracted from the article]

Portfolio trading, a tactic that allows investors to buy or sell bundles of bonds at once, is becoming popular in the municipal bond market. This method has the potential to increase liquidity in the buy-and-hold market, where small towns and school districts' debt may not trade frequently. While there are challenges to implementing portfolio trading in the municipal bond market, such as the large number of active muni CUSIPs and the difficulty of shorting municipals, the benefits are apparent, as portfolio trading has reduced transaction costs in the corporate bond market by over 40%. If portfolio trading becomes more widespread in munis, it could make the market more liquid. [Extracted from the article]

Clarks Summit University, a small Christian college in Pennsylvania, has announced that it will be closing due to financial difficulties. This closure reflects the challenges faced by small colleges dealing with declining enrollment and increasing costs. Religious colleges, in particular, struggle to attract young people who are less interested in organized faith. The school will assist current students in transitioning to other universities, and summer courses will continue as planned. Another small Christian college, Eastern Nazarene College, recently announced its closure for similar financial reasons. [Extracted from the article]

Eastern Nazarene College, a small Christian college near Boston, has announced its closure due to financial difficulties. The college's board of trustees voted unanimously to begin the process of closing the school, citing "significant financial headwinds." The college plans to continue serving current students until they graduate and has negotiated teach-out agreements with three other schools. The closure reflects the challenges faced by small colleges in the US, particularly religious institutions, as they struggle with declining enrollment and rising costs. This follows the recent closure of Philadelphia's University of the Arts and the merger of a private college in Manhattan with Northeastern University, both due to financial issues. [Extracted from the article]

Kansas Governor Laura Kelly has signed a bill aimed at attracting the Kansas City Chiefs or Kansas City Royals to move from Missouri to Kansas. The legislation allows for the sale of bonds to fund the construction of stadiums or ballparks, with the bonds being paid off through sales tax revenue generated by development around the sports complex. This move comes after voters in a Missouri county rejected a tax extension to fund renovations for the Chiefs' home stadium and a new ballpark for the Royals. The legislation has received criticism, with concerns raised about the financing for the Chiefs. [Extracted from the article]