Rising construction costs nibble at federal infrastructure funds

Add stress in the regional banking sector to the bevy of pressures facing the construction industry and the infrastructure projects it builds. Small and medium banks are tapping the brakes on construction loans as they struggle to manage interest rate-related pressures that sparked some failures. "It's surprising, the reach of those banks," said Julian Anderson, president of Rider Levett Bucknall North America.

Check out our latest Rising Stars and the inaugural class of Muni Hall of Famers.

Illinois' positive rating momentum and near-term budgetary commitment to raising higher education funding helped lift the ratings of the University of Illinois and Illinois State University. Moody's Investors Service recently upgraded Illinois State University's issuer and auxiliary facilities system ratings to A3 from Baa1 and its certificates of participation two notches to A3 from Baa2, assigning a positive outlook. The rating agency raised the state flagship University of Illinois' issuer rating to Aa2 from Aa3 last week.?

Submit a colleague for consideration to our Hall of Fame and Rising Stars programs here before nominations close May 5.

New Jersey's efforts to reduce long-term obligations, especially pension liabilities, helped it land a second rating upgrade ahead of next week's sale of more than $1 billion of school bonds. Fitch Ratings raised New Jersey's issuer and general obligation bond ratings on Tuesday to A-plus from A and revised its outlook to stable from positive. Moody’s Investors Service upgraded the state’s issuer rating to A1 from A2 last week.

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.

A massive Arizona participant sports venue that defaulted on its bonds lost its naming rights partner. Legacy Cares, Inc., the venue's nonprofit developer, said Tuesday Bell Bank Park will be called Legacy Park for now. Bell Bank, which entered into a 10-year naming rights deal in September 2021, issued a statement this week saying it notified the venue's operator in November it was terminating the agreement following "various defaults under the naming rights agreement, as well as public reports of financial concern at the facility."?

There’s still time to register for The Bond Buyer Texas Public Finance conference in Austin this week.?

Municipals were firmer in spots Tuesday, while U.S. Treasury yields rose on maturities 10 years and in ahead of Wednesday's consumer price index report. Triple-A yields were bumped up to three basis points Tuesday while UST yields rose up to two basis points 10 years and in, moving municipal-UST ratios near their 12-month lows, according to Refinitiv MMD.

Watch the acceptance speeches and look at some of the photos from our Deal of the Year event in New York City.?

Despite volatility, bank failures and heightened macroeconomic uncertainty in the first quarter, the municipal market offers pockets of opportunity in the second as a result of higher yields and overall fundamental strength of the asset class, some investors say.

Sign up here to receive The Bond Buyer's complete newsletter — delivered to your inbox daily.