Attendance Is Down at Muni Event
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Vol. 392 No. 35272 N.Y., N.Y. THE DAILY NEWSPAPER OF PUBLIC FINANCE Wednesday, March 11, 2020 WEDNESDAY Democrats Attendance www.bondbuyer.com Divergent THE REGIONS Is Down at OFFICIALS AT NEW YORK’S Metropolitan Transportation Infra Views Authority are studying the BY BRIAN TUMULTY financial hit from COVID-19. Muni Event Related costs range from a The two remaining candidates labor-intensive disinfecting with a viable chance of securing BY KEELEY WEBSTER of the system to an expected the Democratic presidential nom- ridership decline, according to ination have grand yet divergent Less than half of the 211 regis- Chairman Patrick Foye. 4 plans for improving America’s in- tered participants showed up for frastructure. Monday’s Los Angeles Regional THE PORT AUTHORITY OF NEW YORK Sen. Bernie Sanders’ plan ap- Investors conference in the wake pears to be somewhat fuzzy be- of the COVID-19 outbreak. and New Jersey’s executive cause it’s embedded as part of the The city made the decision to director, Rick Cotton, plans to Green New Deal that’s a center- go ahead with the fifth edition of maintain day-to-day operations piece of his campaign. Bloomberg News the conference it holds every two of his leadership post from Former Vice President Joe Bernie Sanders and Joe Biden offer competing visions to tackle the in- years because it had already in- home after testing positive for Biden lays out his vision in a sep- frastructure spending gap in the united States. curred the costs, and because the the coronavirus that causes arate infrastructure plan that relies Centers for Disease Control and COVID-19. 5 partly on policies developed during Congress. friendly economy. Prevention has not recommend- the Obama administration and on Following Super Tuesday vot- “I think you start off by fixing ed people cease taking domestic THE ECONOMY legislative proposals already intro- ing in 14 states, Biden was leading the broken infrastructure in a mod- flights, said Natalie Brill, Los An- duced in Congress. with 616 delegates to the Demo- ern way,” Biden said at the Feb. geles’ debt manager. WHEN THE FEDERAL RESERVE BEGAN Both are proposing to spend cratic National Convention to 516 16 forum in Las Vegas sponsored Though the CDC has recom- expanding its balance sheet hundreds of billions of dollars that for Sanders with 1,991 needed to by the group United For Infra- mended against flights to China, with quantitative easing, it was would need to gain the support of win the nomination. structure, citing his plan to install Italy and South Korea, it hasn’t seen as an emergency mea- lawmakers in both chambers of Because of their poor showing 500,000 charging stations for elec- recommended that people cease sure. A decade later, the Fed on Super Tuesday, Sen. Elizabeth tric vehicles on existing roads as flying in the continental U.S. is again in jeopardy of hitting Warren of Massachusetts and for- an example. “They aren’t saying stay home TUESDAY’S YIELDS zero lower bound and its bal- mer New York City Mayor Mi- Biden was among several Dem- unless you have flu-like symp- ocratic candidates who attended The Bond Buyer 40 chael Bloomberg became the latest toms,” said Natalie rill, the city’s ance sheet remains large.. 2 candidates to drop out of the race. that forum, but Sanders did not. debt manager. “Their recommen- 3.7 Biden said at a recent infra- “I’m glad that so many candi- dations have been to wash your WEB EXCLUSIVES 3.2 To Maturity structure forum that it’s “a false dates put out infrastructure plans hands and cover your mouth when PUERTO RICO GOV. WANDA VÁZQUEZ 3.40 Up 0.05 choice” to say the next president this campaign cycle,” Zachary you cough.” Garced appointed debt director 2.7 will have to choose between fixing Schafer, CEO of United for In- Many firms have implement- the nation’s aging infrastructure frastructure, said in an interview. ed policies to limit non-essential Omar Marrero as her repre- 2.2 and moving toward a more climate Turn to Infrastructure page 4 Turn to Many page 5 sentative to the Puerto Rico 1.7 To Par Call Oversight Board. 2.00 Up 0.14 1.3 AUSTIN'S CAPITAL METRO TRANSIT 02/26 03/02 03/05 03/10 Convention Center Deal Advances in Milwaukee Authority is rolling out a pro- 4.5 posal for a $9.6 billion subway BY YVETTE SHIELDS and light rail system after pre- 4.1 vious efforts failed at the polls. 3.8 The public agency that owns 3.4 and operates Milwaukee’s PODCAST: DAN DISALVO, A MANHATTAN 3.1 convention center laid out fi- 2.8 Institute senior fellow, explains nancing models for an upsized 2.4 how North Carolina provides possible $425 million expan- 2.1 a model for tackling other sion that would include a mix 1.8 of new-money tax-exempt and post-employment benefits lia- MFJDNOSAJJMA taxable refunding bonds with bility. Paul Burton hosts. Complete market coverage appears on page 2 up to $300 million carrying a state moral obligation backing. The Wisconsin Center Dis- trict also released renderings of the revised plan for a larger project — previously estimated at $300 million. The complet- ed facility would double the square footage of the existing center in downtown Milwau- kee. “Revealing our vision for A rendering of the proposed expansion of Milwaukee’s downtown con- Turn to Wisconsin page 6 vention center, to be funded with bonds. 001_BB031120 1 3/10/2020 5:02:00 PM Market News Wednesday, March 11, 2020 2 The Bond Buyer Munis Tossed Again on Turbulent Seas of the Global Markets Volatility continues to hang over finan- things being equal, muni tentially helped by President At midday, Block observed trading vol- cial markets due to COVID-19, and after benchmarks and pricing ser- Trump’s proposal for a pay- ume down about 30% versus the average a Monday that had stocks fall at least 6% vices are probably just strug- roll tax cut. levels earlier in the morning. and muni yields down as much as 16 basis gling in general to keep up The Dow Jones Industrial “Accounts experiencing redemptions points, stocks rebounded Tuesday and mu- with the volatility in this mar- Average was up about 3.35%, or outflows and that need to raise cash are nis saw a correction. ket,” a New York trader said. the S&P 500 index was high- selling more liquid names at wider spreads Munis were weaker on Tuesday on the The 10-year muni-to-Trea- er by 3.49% and the Nasdaq to compensate for rock bottom absolute MBIS benchmark scale, with yields rising sury ratio was calculated at gained roughly 3.54% late in levels,” he said, noting that ratios remain six basis points in the 10-year and by six 121.2% while the 30-year the session Tuesday. dislocated as MMD yields have lagged basis points in the 30-year maturity. High- muni-to-Treasury ratio stood The three-month Treasury Treasuries. grades were also stronger, with yields on at 126.1%, according to was yielding 0.440%, the “We are using this opportunity to pick MBIS’ AAA scale decreasing by six basis MMD. BY AARON WEITZMAN Treasury two-year was yield- up high-quality names at better levels as points in the 10-year maturity and by six “Muni yields are giving ing 0.495%, the five-year was the dislocation is temporary and should basis points in the 30-year maturity. back everything gained yes- yielding 0.639%, the 10-year subside as fears abate,” Block said. Munis weakened on Refinitiv Municipal terday and then some,” according to ICE was yielding 0.774% and the 30-year was “We like large hub airports, short-aver- Market Data’s AAA benchmark scale, as Data Services. “The ICE muni yield curve yielding 1.285%. age life tobacco, high-grade hospitals, and the yield on the 10-year muni GO was is anywhere from eight to 12 basis points “I am not sure what to make of this mar- anything else with solid fundamentals but 13 basis points higher to 0.91% off of a higher at midday. High-yield is up 10 basis ket, as the swings and extremes are like tainted by fear of the virus,” he explained. historic low of 0.78% and the 30-year rose points for choice, ex. tobaccos, which are nothing I have seen before,” a trader said. Floating rate securities also look attrac- 16 basis points to 1.54% from a historic only five basis points higher after yester- The trader added that it has created some tive as SIFMA remains affected by dis- low 1.38%. day’s underperformance. Taxable yields 100 plus percentages of Treasuries across located short-term bank funding, Block BVAL, ICE, IHS also cut their curves, are seven to 12 basis points higher.” the muni curve. added. with eight to15 basis points cuts. “All Stocks rebounded slightly and were po- “However, we have also started seeing In the primary market Tuesday, Citi mutual fund outflows. I have to believe priced California’s (Aa2/AA-/AA/NR) munis will uncouple from Treasuries.” $2.08 billion of various purpose general Another trader also said he has never obligation bonds and refunding bonds. The Why the Fed’s Large Balance Sheet seen anything like this before. deal was priced with few 5% coupons, and “Now we are really going to start hear- with more 2s, 3,s and 4s.