CDFA Bond Finance Update - September 15, 2020

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Features

Baker Tilly Develops Public Sector COVID-19 Recovery Assessment Tool

The Baker Tilly Public Sector COVID-19 Recovery Assessment tool can help state and local government, utility and school district leaders assess the current impact of the coronavirus crisis on your entity and community, understand your level of preparedness for recovery in a possibly permanently altered environment and identify potential risks your entity may need to mitigate.

How the Fed's Expanded Support Can Help the Muni Market

The Federal Reserve has stepped in once again to help a part of the economy suffering from the coronavirus-fueled recession while it waits on more support from Congress. It is expanding its $500 billion municipal liquidity facility (MLF) to include more cities and counties as well as multi-state entities.

Municipal Bonds: 5 Studies on Racism, Climate Change, Aging Populations, Credit Ratings

The five studies that follow explore how municipal bond mismanagement can have disparate impacts on different racial groups, how climate change and aging populations affect bond interest rates, and provide insight on how credit ratings agencies — which can save or cost municipalities tens of millions of dollars — assess municipal credit risk.

MTA Is Poised to Test Whether Fed Loans Beat Wall Street

The municipal-bond market will soon get a test of whether the Federal Reserve's decision to lower the price of its loans will draw governments to its virtually unused $500 billion lending program. New York's MTA, among the agencies hardest hit financially by the coronavirus shutdowns, is planning to auction off $465 million of three-year notes.

Deserted College Dorms Sow Trouble for $14B in Muni Bonds

Colleges for years have been turning to private companies for student housing to shed costs and lure students with state-of-the-art facilities. The companies borrowed the money for construction from municipal bond investors, with a promise to repay with rent and lease revenue. But with schools switching to virtual learning or limiting the number of students who can live on campus, the bonds that are often already risky are facing a major threat.

State Treasurer Announces $1.3B Revenue Bond Sale for California State University

California State Treasurer Fiona Ma announced the sale of $1.3 billion of revenue bonds for the Trustees of the California State University (CSU) to provide funding for various capital improvements and refund certain of CSU's outstanding Systemwide Revenue Bonds.

Fitch Takes Various Rating Actions on U.S. Enhanced Municipal Bonds and TOBs

Fitch Ratings has taken various conforming rating actions on enhanced municipal bonds and tender option bonds (TOBs), corresponding to actions taken on their associated enhancement providers, liquidity providers, or underlying bonds.

Muni Yields Hit Lowest Since 1952 as Fiscal Crisis Tests a Haven

America's municipal bondholders have never been paid so little for taking on so much risk. The yields on state and local government bonds have steadily dwindled over the past month, even as the resurgent coronavirus pandemic is threatening to prolong the deep recession that's dealing a financial setback to borrowers in virtually every corner of the $3.9 trillion markets.

Market Reports

Upcoming Events

CDFA-Bricker PACE Webinar Series: PACE Program Capitalization
Tuesday, September 22, 2020 - 11:00 AM - 1:00 PM Eastern

PACE program financing can be provided through private third parties, public bonds, or a combination of both, and within those options, there are many creative approaches being implemented across the nation. In 2017, The Kresge Foundation made a $3 million program-related investment into the St. Paul Port Authority's "Trillion BTU" and "MinnPACE" loan programs. This was a first of its kind PRI to help the community on-board PACE. This webinar will explore this and other creative methods that communities can utilize to capitalize their PACE program.

CDFA Food Systems Finance Webinar Series: Financing Food Systems Entrepreneurs
Tuesday, September 29, 2020 - 2:00 PM Eastern

During this installment of the CDFA Food Systems Finance Webinar Series, development finance professionals from around the country will describe their strategies for supporting local entrepreneurs in moving their business from idea to execution.

News from

The latest municipal finance headlines from The Bond Buyer.

Municipals Steady as Market Searches for Direction

Municipals were little changed on Tuesday and off to a slow start post the Labor Day holiday. Triple-A benchmarks showed steady levels from last week while trade volume remained light ahead of the week's $7 billion new-issue slate.

Congress Faces Sept. 30 Deadline to Decide on State and Local Aid

The post-Labor Day return of Congress to Washington leaves lawmakers just over three weeks to agree on a stopgap to avoid a government shutdown and whatever new emergency aid might be provided to address the COVID-19 pandemic. The deadline for acting is the Sept. 30 end of the federal fiscal year.

What Does the Selection of Kamala Harris Mean for Muni Finance?

Sen. Kamala Harris of California brings a long record as a prosecutor with no significant experience in municipal finance as the running mate of presumptive Democratic presidential nominee Joe Biden. But Biden already is running on a muni-friendly platform that makes her policy record in public finance of little note if they win the November election.

CDFA is proud to partner with The Bond Buyer as our Official Media Sponsor. Read more about this partnership and all of its benefits here.

Bond Finance Headlines

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Highlights from the Online Resource Database

Forward-Looking Statements in Municipal Disclosures
Bond Finance | Disaster Recovery & Relief | Municipal Securities Rulemaking Board (MSRB)

Due to recent events related to COVID-19, the SEC released a public statement on May 4, 2020, encouraging municipal issuers and issuers to consider voluntary disclosures of forward-looking information regarding the potential future impacts of COVID-19 on current financial and operating conditions and future results of operation.

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The Council of Development Finance Agencies is a national association dedicated to the advancement of development finance concerns and interests. CDFA is comprised of the nation's leading and most knowledgeable members of the development finance community representing public, private, and non-profit entities alike. For more information visit CDFA.net or email info@cdfa.net

For more information about sponsoring one of CDFA's electronic newsletters, please contact CDFA or call 614-705-1300.

Council of Development Finance Agencies
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Columbus, OH 43215
(614) 705-1300
info@cdfa.net