Join CDFA for the Return of the Revolving Loan Fund WebCourse Week!
Revolving Loan Fund WebCourse Week is returning with the intro level on May 13-14 followed by the advanced level on May 15-16. Register for one or both of these courses to learn from experts about developing, implementing, and managing efficient and impactful revolving loan fund programs.
Muni Investors Challenge $1B Bond Refunding Plan by University of California Regents
A group of investors is challenging a $1 billion municipal bond refunding by the Regents of the University of California. The bondholders said there's "no legal basis" to allow the refinancing. The deal is part of a wave of planned refundings that would replace taxable debt sold under the Build America Bonds program with lower-yielding, tax-exempt securities. Some investors are questioning their legality, which hinges on a provision in the bond documents that allows state and local governments to buy back their debt before it comes due if an extraordinary event occurs.
Harvard Attracts Insatiable Demand for AAA-Rated Bond Sale
Harvard University — armed with a AAA credit rating and $50 billion endowment — sold $750 million in taxable bonds this week as buyers shrugged off recent controversies swirling around the school. The debt priced at 47 basis points above similar-maturity Treasuries, compared to earlier price talk of 60 basis points. That's one of the tightest spreads of any 11-year investment-grade bond dating back to at least 2009. The bonds rallied in secondary trading, a further sign of strong investor appetite.
Washington, D.C. Considering $80M in Tax-Exempt Bonds for Golf Course Facilities
Washington, D.C. has released notice of its intention to conduct a telephonic public hearing concerning the proposed issuance of tax-exempt revenue bonds. These bonds, not to exceed $80 million in total, aim to support the National Links Trust Inc. in its mission to renovate, construct, and equip three golf course facilities within Washington, D.C.
Massachusetts Considering $4.1B Housing Bond Authorization Bill
Massachusetts has proposed a $4.1 billion bond-authorization bill to help improve public housing and incentivize new construction to address the lowest rental housing vacancy in the country, at 2.8%, compared with a "healthy" proportion of 6%.
DFA of Summit County President Chris Burnham Retiring, Rachel Bridenstine Taking Over
Development Finance Authority (DFA) of Summit County President Chris Burnham announced that he's retiring at the end of 2024 as the first president of the Akron-based agency. In 2025, Rachel Bridenstine will take over as DFA's president to manage its coffers and 15-member team. Under Chris' leadership, DFA of Summit County has provided more than $882 million in financing for 341 projects in Ohio.
Federation of American Scientists Calls to Exempt Affordable Housing from Volume Cap
Tax-exempt Private Activity Bonds (PABs) are one of the primary financial tools to build and preserve affordable housing as they generate as-of-right Low-Income Housing Tax Credits (LIHTC). However, the federal cap on those bonds creates a significant barrier to expanding the overall affordable housing supply. By exempting affordable housing from the state volume cap, we can build more housing in states that are fully utilizing their volume cap.
Sustainable Bond Issuance Could Reach $1T, Says S&P
It's been quite the start to 2024 when it comes to bond issuance in the public and private sectors. Record issuance is also hitting the sustainable bond market. S&P Global Ratings predicts that sustainable bond issuance could top the $1 trillion mark this year. Sustainable bonds appeal to fixed-income investors who also want to add an ESG component to their bond investing portfolio. Record bond issuance this year could hinge on expectations the Federal Reserve will cut interest rates when inflationary data substantiates looser monetary policy.
Chicago, IL Plans $1.3B Bond Issue for Neighborhood Development
A planned $1.25 billion bond issuance announced by Chicago, IL would restructure the city's approach to equitable neighborhood development and distance itself from the challenges of the primary public finance tool of previous administrations. Pending City Council approval, the Housing and Economic Development Bond would provide $250 million for community improvements throughout Chicago every year for five years (2024-2028).
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