Municipal primary issuance takes a fall; PREPA bondholders may quit talks
The Bond Buyer
The only independent resource serving the complete municipal finance community.
?A big decline in refundings pushed municipal primary volume down in May; PREPA bondholders may walk away from negotiations; Bondholders will struggle to reinvest redemptions;? and what else we're covering in the municipal bond and public finance sectors.
Total May volume was $31.167 billion in 7,250 deals versus $35.358 billion in 1,295 issues a year earlier. In a continuing trend, new-money issuance was up 14.2% in May year-over-year.
The Bankruptcy Judge extended the deadline for PREPA debt negotiations to July 1 and bondholders expressed frustrations, warning they may seek full repayment if a deal is not made.
After nine months of a soft closure, two Nuveen high-yield mutual funds will resume accepting purchases from new investors in the face of improved market conditions.
June redemptions will be the highest of the year at $50.6 billion. New-issue supply — 30-day visible is currently at $15.5 billion — is unlikely to keep up.
State officials warn that federal infrastructure funds may be lost if lawmakers don't act on new authorizations.
As much as $3 billion of Oklahoma utility debt related to 2021's Winter Storm Uri will begin hitting the market as early as July after winning state court approval.
?Sign up here to receive The Bond Buyer's complete newsletter — delivered to your inbox daily.