Municipal Advisor for PFA, CalCHA Defends Distressed Deals
GPM Municipal Advisors, the municipal advisor for California Community Housing Agency (CalCHA) and the Public Finance Authority (PFA), defended its role amid a wave of distressed workforce‑housing bond deals. CalCHA’s $2.5 billion portfolio of 14 projects has seven assets in default or impairment, while PFA’s nine asset‑ownership bonds are all but one in default. GPM argues it serves only as staff, not as a financial analyst, and points to broader market shifts that made the high‑leverage, low‑rate financing model untenable. Regulators have flagged the structure of these conduit bonds, but no enforcement action has been taken yet.
Falling Average Trade Size Shows SMA Demand, Growing Electronification
The average municipal‑bond trade size slipped below $204,000 in Q1, a 5% drop from the prior year, reflecting a surge in separately managed accounts (SMAs). SMAs now hold roughly $1.3 trillion in assets across about 180 managers, fueling a constant flow...
Moody's Knocks a Private Vermont College Deeper Into Junk
Moody's Investors Service downgraded Saint Michael's College, a small Catholic liberal‑arts school in Vermont, to a B3 rating, moving it deeper into junk territory from B1. The college carries $57.9 million of outstanding debt and has posted three consecutive years of...
DOT Bullish on Brightline West as $6bn RRIF Loan Pends
The Federal Railroad Administration chief David Fink publicly endorsed Brightline West, highlighting it as the most viable high‑speed rail project in the United States for the next decade. The endorsement comes while the company awaits a decision on a $6 billion...
Munis and USTs Weaken as Strait of Hormuz Blockade Drags On
Municipal bond yields slipped while U.S. Treasury yields rose, with the 30‑year note edging just below 5%—its highest level since mid‑July. The move followed President Donald Trump’s dismissal of Iran’s proposal to reopen the Strait of Hormuz, heightening concerns about...
Moody's Downgrades Northern Illinois University to Junk
Moody's Ratings downgraded Northern Illinois University’s issuer and revenue‑bond ratings to speculative‑grade Ba1, ending its investment‑grade status. The university carries about $301 million of debt and posted less than 1× debt‑service coverage in fiscal 2025. NIU cited a balanced current budget,...
FRA Flexes Funding
The Federal Railroad Administration announced a series of funding initiatives aimed at modernizing U.S. passenger rail and improving safety. It unveiled $1.1 billion for crossing upgrades, $4.7 billion for Northeast Corridor projects, and $2.04 billion for the Consolidated Rail Infrastructure and Safety Improvements...
Years After TCJA's Enactment, Push to Restore Tax-Exempt Advance Refunding Continues
The 2017 Tax Cuts and Jobs Act eliminated tax‑exempt advance refundings, a long‑standing municipal financing tool, and the provision will turn ten next year. State and local issuers, led by Michigan Treasurer Rachael Eubanks, argue that rising interest rates have...
Munis Cheapen, USTs End Mixed
Municipal bond yields fell across the curve on Tuesday as U.S. Treasuries posted mixed moves and equity markets closed lower. Analysts linked the muni decline to the Treasury market’s range‑bound behavior and the Federal Reserve’s likely decision to hold rates...
Sacramento School Bonds Dropped to Junk on Fiscal Woes
Fitch Ratings downgraded Sacramento City Unified School District’s issuer default rating to BB‑minus and its unlimited‑tax general‑obligation bonds to junk, while dedicated‑tax bonds remain investment‑grade. The agency cited rapidly depleting liquidity, eroding reserves and overspending that began in fiscal 2025...
How Mortgage Revenue Bonds Can Boost Your Portfolio
The article explains how state and local housing finance agencies issue mortgage revenue bonds (MRBs) to fund affordable single‑ and multi‑family housing, detailing their structures, credit quality, and market dynamics. It highlights that MRBs, backed by government‑pledged assets and often...
Florida Fight Continues over Tax Collection for PACE Bonds
The Florida Supreme Court will consider a dispute between the Florida PACE Funding Agency and 42 county tax collectors over whether the collectors must enforce assessments that back $5 billion of authorized PACE bonds. PACE seeks a writ confirming that the...
Bond Insurance Usage Rises Nearly 5% in Q1
Bond insurance volume rose 4.9% year‑over‑year to $7.704 billion in Q1 2026, covering 350 deals. The two largest municipal insurers, Assured Guaranty and BAM, together accounted for the entire market, but Assured’s share slipped to 53.1% while BAM’s grew to 46.9% with...
Push to Expand Financing Tools, Like PABs and TIFIA, for Ports
The Trump administration’s Maritime Action Plan calls for expanded financing tools for U.S. ports, including a national volume cap on private activity bonds (PABs) and access to the Transportation Infrastructure Finance and Innovation Act (TIFIA) loan program. Attorneys from Squire...
Texas Voters Weigh $78.48 Billion of Bonds on May 2
Texas voters will decide on $78.48 billion of local general‑obligation bonds on May 2, the largest May‑month package in state history. The ballot features a $6.24 billion Dallas Independent School District proposal, $65 billion from municipal utility districts, and measures from five cities totaling...