September's roundup of top news items impacting the bond markets include the Securities and Exchange Commission's $1.3 million wave of fines against advisors, Trump touting the creation of a U.S. sovereign wealth fund and more.
Ex-Citi banker joins advisory firm, launches investment business
"I was so busy for 16 years that I needed to take some time to not be busy," Chandrasekhar said. "When this was happening, I did an audit of myself and I saw this skill set that included the language of very highly rated credits to sub-investment grade project finance."
During her 14 years at Citi, she specialized in higher education, health care and social infrastructure, including transactions like developer-driven public-private partnerships, housing and energy transactions.
SEC charges 12 municipal advisors for recordkeeping failures
That's the latest in the commission's two-year pursuit of "off-channel" communications in the finance sector, this time coming down on MAs after charging groups of broker-dealers, investment advisors, and just last month, credit rating agencies.
Rising Chicago deficit forecast raises eyebrows in muni market
The budget
Chicago's fiscal picture had improved in recent years, with pandemic relief funding and the city's choice to increase pension contributions bringing a
Senators preview coming tax debate, SALT, housing, capital gains on table
"In a matter of months, the Congress will begin a tax debate unlike any in recent memory," said Sen. Ron Wyden, D-Ore.
"This will be a make-or-break moment for the federal budget and America's middle class, and the two sides have very different ideas of how to move forward," Wyden said. "The real question is, are the very wealthy going to be taxed on the income they actually enjoy? We're going to have to work through those issues."
Ranking member Sen. Mike Crapo, R-Idaho, said allowing TCJA provisions to expire would "inflict multi-trillion-dollar tax hikes" on Americans. "Given the litany of tax hike proposals on the table from many of my Democratic colleagues, no area is more uncertain as we head into this election than tax," Crapo said.
Republicans prep controversial measure to avert government shutdown
Work on that has already begun. Speaker of the House Mike Johnson, R-La., held a call early Sept. 4 among fellow House Republicans on what to include in the bill that is being coupled to the Safeguard American Voter Eligibility Act, a bill introduced by another Louisiana Republican, Rep. Clay Higgins. That bill would require proof of citizenship before registering to vote in a federal election.
"That's clearly a non-starter in the Senate and in the White House so it appears like we're on the verge of some brinkmanship here heading into middle and late September and into election season," said Brett Bolton, vice president of federal legislative and regulatory policy at the Bond Dealers of America. "That'll be interesting how that plays out."
Trump pitches sovereign wealth fund to pay for infrastructure projects
"We'll create America's own sovereign wealth fund to invest in great national endeavors for the benefit of all of the American people," Trump said. "Why don't we have a wealth fund? Other countries have a wealth funds. We have nothing. We have nothing. We're going to have a sovereign wealth fund, or we can name it something different."
Trump did not provide specifics on the proposal and added that the name 'sovereign wealth fund' may not be "appropriate." But the idea would be to create a fund, supported with tariffs on certain goods and other revenue, that would be managed by private managers and make strategic investments in U.S. infrastructure.
Competition for NBA 76ers arena raises questions of public interest
The NBA franchise has pledged to build a $1.5 billion arena in Center City Philadelphia with no government subsidies, but many Philadelphians remain vocally opposed. New Jersey made a $1.3 billion offer to build the stadium in Camden, right across the Delaware River.
Between proposals from the Sixers, Philadelphia and New Jersey, who's getting a good deal? Economists aren't sure anyone is.
Mega deals, pre-election push, has Street reassessing issuance expectations for 2024
The pace of issuance is not letting up, leading some strategists to
HilltopSecurities recently revised its issuance forecast to $480 billion from $420 billion due to stronger-than-expected economic growth. This is the second revision of the year, as the firm raised its forecast upward at the end of January to $420 billion from $330 billion.
Banks hint at legal action over FDTA's move to replace CUSIP identifier
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In Sept. 3
Infrastructure investors to cities, states: Borrow more, worry less
That's the view of infrastructure investors who spoke at The Bond Buyer's Infrastructure conference in September.
"We're very under-levered as an issuance community," said Hector Negroni, founder and CEO at Foundation Credit.
"Borrow more — you're not going to get over your skis," Negroni advised issuers, adding they should worry less about potential downgrades and more about the types of projects needed in their communities. "There's a massive pool of demand and you're not being charged for it. The time is now."