Texas turns up the heat on underwriters
The Bond Buyer
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Texas will allow issuers to replace underwriters that fail to comply with its fossil fuel law; a ruling is expected on Illinois’ effort to consolidate suburban Chicago and downstate police pension fund assets; the IRS is looking into a Burlington, Vermont, QSCB sale; and what else we're covering in the municipal bond and public finance sectors.
The eligibility of some investment banks to underwrite municipal bonds in Texas is under review while the state checks compliance with its fossil fuel law, according to the attorney general's office.
The suit by local police pension funds slowed the consolidation process that Gov. J.B. Pritzker touted as helping local governments manage rising pension costs.
The city has received a notice from the IRS seeking evidence bond proceeds were used on the construction, rehabilitation or repair of public school buildings.
If state and local governments make progress on social problems with federal relief funds, it could be credit positive for them, Moody’s Investors Service said.
Investors pulled more from municipal bond mutual funds in the latest week, with Refinitiv Lipper reporting $2.875 billion of outflows, down from $3.548 billion of outflows in the previous week.
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