Backlash on MSRB fee plan; Chicago plans muni bonds

Municipal bond industry leaders are urging the Securities and Exchange Commission to reject the Municipal Securities Rulemaking Board’s proposed fee amendments since they don’t address the discrepancy between fees collected from dealers and municipal advisors, and as a result of a lack of transparency over the budgeting process.

And if you missed any of our ESG Week coverage, make sure to check our ESG special section which has all the articles, the podcast and a taped version of the Leaders event.

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Chicago officials will welcome the buy-side back for an in-person event Aug. 11 during which its COVID-19 pandemic fiscal recovery efforts will take center stage as the city looks to court investors ahead of billions of planned borrowing this year. The gathering also gives investors the chance to pose questions on those top-of-mind subjects ahead of a series of deals that would tap $9 billion of borrowing authority in a mix of new-money and refunding deals under the city’s general obligation, sales tax securitization, water, wastewater, and airport credits.

California is halfway to its $1 billion funding goal on an innovative program that pairs first-time homebuyers with investors to make it easier to purchase a home. To lessen the down payment and the amount of each loan payment, the state offers a second mortgage that covers 17% of the home’s price. The buyer makes no payments on the second mortgage until the house is sold. Under this arrangement, the state owns a portion of the home and receives a percentage of any profit when the house sells.

President Joe Biden has nominated Denver International Airport CEO Phillip Washington to head the Federal Aviation Administration , a move that would put a long-time issuer in the top aviation spot. Washington would take over during a turbulent time for the airlines, which are experiencing many flight delays and cancellations. U.S. Transportation Secretary Pete Buttigieg has met with airline executives urging them to better manage flights, and Sen. Bernie Sanders has called on the FAA and Department of Transportation to fine airlines for delays or cancellations.

Municipals were steady to firmer in secondary trading Thursday as a large airport revenue bond offering from the City and County of Denver, Colorado, and the Triborough Bridge and Tunnel Authority's MTA deal took the focus. Municipals continued to ignore the movements of U.S. Treasuries, which saw yields rise for the second day, while equities rallied. Triple-A yields fell one to three basis points depending on the scale, with more strength inside 10 years.