Municipals have been up and down President Donald Trump's on again off again tariff announcements, but issuers and investors alike remain confident that the market is still ripe with opportunities.
The two-year ratio that day was at 80%, the five-year at 80%, the 10-year at 80% and the 30-year at 95%, according to Municipal Market Data's 3 p.m. EDT read. ICE Data Services had the two-year at 78%, the five-year at 79%, the 10-year at 79% and the 30-year at 94% at 4 p.m.
Jennifer Johnston, senior vice president and director of research for municipal bonds at Franklin Templeton Fixed Income, told The Bond Buyer that of the deals that came to market in April, many did so in the wake of project funding largely "drying up" due to rates.
"Sectors across the board are ready to issue, ready to get back to building capital to the extent rates might go up," Johnston said.
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Noteworthy last month: Harvard University's $8.2 billion outstanding municipal debt, an influx of funding for different projects in Mobile, Alabama, the $130 million of general obligation bonds from Chicago's Regional Transportation Authority and more.
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Harvard bonds stumble, but persist amid tax exemption woes
Despite ongoing efforts from the Internal Revenue Service to
Following the Trump administration's freeze on $2.2 billion in federal grants awarded to the university, Harvard officials filed a lawsuit on April 21.
"As an investor, you have to just kind of say this is an unusual set of circumstances, but if anyone can handle it, it's this university," Adam Stern, co-head of research at Boston-based Breckinridge Capital Advisors, told The Bond Buyer.
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Mobile, Alabama, slated to see influx of infrastructure funding
Mobile, Alabama, is projected to see a sizable inflow of infrastructure investments ranging from pay-as-you-go funding, bond sales, and federal taxpayer subsidies to support major transportation projects in the region.
Officials like Mobile Director of Communications Jason Johnson are highlighting how Mayor Sandy Stimpson refrained from tapping the public debt market since her election in 2013, owing to her focus on "paying down debt and avoiding borrowing to fund operations or routine capital improvements," Johnson said.
Mobile officials decided to break that trend in March with its $222.5 million in general obligation warrants that generated a $28.6 million premium. Funds from those bonds will go toward the construction of an entertainment area that will replace the Mobile Civic Center, built in 1964.
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The return to market of Chicago's Regional Transportation Authority
Chicago's Regional Transportation Authority returned to market on April 29 with $130 million worth of Series 2025A general obligation bonds, aiming to fund what are being called the country's first zero-emission locomotives.
The deal saw yields range from 3.15% with a 5% coupon in 2026 to 4.87% with a 5% coupon in 2055.
Fitch Ratings assigned a AA-plus rating and stable outlook to the bonds, while S&P Global Ratings gave the bonds a AA rating and also a stable outlook. RTA Chief Financial Officer Kevin Bueso told The Bond Buyer the firm pricing date was due in part to the tariff volatility's impact on rates.
"We only forecast that [trend] to get worse and worse," Bueso said. "So there's a greater risk in the coming months, as well. The market has not factored in the risk of a full-blown trade war just yet, so market valuation reflects the assumption that volatility is transitory."
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Colorado issuance seeks to expand iconic horror location
The Colorado Educational and Cultural Facilities Authority is going to market to fund the purchase of the Stanley Hotel in Estes Park, made popular by Stephen King's novel "The Shining," as well as the construction of a 67,435-square-foot event space and museum dedicated to the horror genre.
The unrated $291.7 million deal includes term maturities of 2059 for $210.23 million of Series A-1 senior lien revenue bonds, 2045 for $31.29 million of taxable Series A-2 senior lien revenue bonds, and 2059 for $50.18 million of Series B subordinate lien revenue bonds, as per preliminary limited offer documentation. RBC Capital Markets is the sole underwriter on the deal.
"It obviously has a lot of history with Stephen King and 'The Shining,' but really making it a cultural epicenter for that, I think, is a great opportunity," Dean Stambules, chief investment officer at Sage Investments, a subsidiary of Sage Hospitality Group, told The Bond Buyer. Sage Hospitality Group will operate and manage the project through a special purpose entity.
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Contentious bond fight in Georgia escalates to federal court
The legal battle unfolding over a proposed monkey breeding facility and $300 million of taxable revenue bonds is moving to federal court after falling short at the state level.
Earlier last month, officials with the Georgia Supreme Court issued a denial of certiorari (refused to consider) a fall decision from the Georgia Court of Appeals, thereby leaving the bond validation in place. The bonds for Safer Human Medicine were originally validated by the Georgia Superior Court in January 2024.
This move could be the spark that reignites a dormant SHM case against the Decatur County-Bainbridge Industrial Development Authority, as the denial triggers the first step needed for the U.S. District Court for the Middle District of Alabama to file a response to the complaint.
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