The Bond Buyer articles from May 2003

The Bond Buyer archives from May 2003

Nursing Home Exemption: Bill Could Circumvent Federal Guarantee Ban.
May 1, 2003... A provision tacked onto legislation passed by the Senate last month is actually a so-called rifle-shot designed to allow a Kentucky nursing home to circumvent the tax law's prohibition on the use of federal guarantees to back tax-exempt bonds...

Muni Volume Hit Record High for April: Reaches $100B Faster Than Ever.
May 1, 2003... April's heavy issuance leaves total volume for this year sailing to new records. But will it continue? The record-setting pace in the long-term municipal bond market moved to new heights in April as volume hit all-time highs for the month....

The Digest.
May 1, 2003... Municipals bond yields fell two or three basis points yesterday while yields were lowered between one and five basis points at a repricing of $1.5 billion Dallas-Fort Worth International Airport Board joint revenue bonds. Complete market...

Fitch Lowers Pennsylvania Airport Bonds Due to US Airways Action.
May 1, 2003... Fitch Ratings, spurred by US Airways Inc.'s rejection of its leases at Pittsburgh International Airport effective Jan. 5, 2004, downgraded Allegheny County Airport Authority's outstanding general airport revenue bonds yesterday two notches to...

Wednesday's Market: Yields Drop One to Five Basis Points at $1.5B Dallas-Ft. Worth Repricing.
May 1, 2003... Municipals bond yields fell two or three basis points yesterday while yields were lowered between one and five basis points at a repricing of $1.5 billion Dallas-Fort Worth International Airport Board joint revenue bonds. Treasuries...

News In Brief: Greenspan: Timing of Rebound Uncertain.
May 1, 2003... Following a season of economic uncertainty, the ongoing decline in risk spreads in corporate bond markets indicates improved financial conditions and that long-run growth prospects for the economy remain solid, Federal Reserve Board chairman...

News In Brief: Chicago PMI Falls To 47.6 in April.
May 1, 2003... The Chicago Purchasing Manager's Index slipped to 47.6 in April from 48.4 in March, its second decline in a row, as well as its second straight month of contraction, the Purchasing Management Association of Chicago said yesterday. ...

News In Brief: N.Y.C. Economic Slump Worsened in April.
May 1, 2003... The New York City economy failed to thaw in April, as mounting job losses, rising unemployment, wobbly equity markets, and tepid technology industries kept business in a "recessionary rut," according to the National Association of Purchasing...

News In Brief: Chicago Fed Index Up, But Still Negative.
May 1, 2003... The Chicago Fed National Activity Index for March gained, but remained in negative territory at -0.67 from a downwardly revised negative 1.24 reading in February, originally reported as negative 0.62. Meanwhile, the three-month moving average...

News In Brief: Treasury Refunding To Raise New Cash.
May 1, 2003... The Treasury Department announced yesterday it will raise $55.729 billion in new cash by auctioning $58 billion to refund $2.271 billion of maturing securities as part of its second-quarter refunding. Treasury said it would auction $22...

Maine Looks to Tighten Up $5.3 Billion Biennial Budget.
May 1, 2003... Legislation attempting to rein in Maine's $5.3 billion fiscal 2004-2005 biennial budget is expected to be introduced today, following proposals voiced by Gov. John Baldacci on Tuesday. The proposed legislation will include meager cuts in...

Delayed State School-Aid Payments Has Some New York Districts Worried.
May 1, 2003... New York has delayed making $1.6 billion in local education aid payments due today, raising concerns about the finances of some cash-strapped communities in the state. The delay comes as the Legislature has, in defiance of Gov. George E....

California GOP Pushes Tax-Backed Bonds to Help Close Gap.
May 1, 2003... California Assembly Republicans have presented a spending plan that many hope will lead to some type of compromise on filling the state's $35 billion fiscal 2004 budget gap. The plan, unveiled Tuesday, includes financing $10 billion of the gap...

Dallas Area Rapid Transit's $1 Billion Rail Project Could See 3-Year Delay.
May 1, 2003... Dallas Area Rapid Transit's $1 billion light-rail expansion faces delays of up to three years due to a budget crisis that could alter the regional authority's pattern of debt issuance. Officials fear failure to extend coveted light-rail...

Texas House: 'Robin Hood' Could Be History By 2004.
May 1, 2003... The Texas House of Representatives late Tuesday gave initial approval to a bill that would repeal the current school finance law if a replacement plan is available by fall 2004. School finance reform was a major selling point for Republican...

Texas Senate OKs $118B Budget, But Comptroller Is Critical.
May 1, 2003... The Texas Senate on Tuesday approved a $117.6 billion budget proposal for the 2004-2005 biennium, but Comptroller Carole Keeton Strayhorn said the spending plan relies on "smoke and mirrors" and jeopardizes the state's financial future. ...

District of Columbia: Mayor, Council Members Close To Resolving Budget Differences.
May 1, 2003... District of Columbia Mayor Anthony A. Williams said yesterday that he and District Council members are close to resolving their differences over the proposed $5.6 billion fiscal 2004 budget, on which the council is scheduled to vote in less...

State & Local Finances: Good Times Are at Least Three Years Away, Analyst Warns.
May 1, 2003... Already under severe fiscal stress, and facing huge budget gaps from plummeting revenues and soaring expenses, most states are unlikely to see much fiscal relief for at least three more years, a governmental fiscal analyst warned here...

Bond Insurers: GE Confirms FGIC is for Sale; Transaction Could Bring in $2 Billion.
May 1, 2003... Speculation is growing that a group led by a mortgage insurance company is the leading candidate to purchase Financial Guaranty Insurance Co., the General Electric Co. unit that was the fourth-ranked insurer in the municipal market last year....

Compensation: California DWR Paid Out Nearly $78 Million in Fees for Record Power Deal.
May 1, 2003... Professional firms took home $77.63 million in commissions and fees for working on last year's record $11.26 billion power purchase revenue bond deal sold by the California Department of Water Resources, according to data released within the...

Personnel Changes: Banc One Capital Markets Loses Three Investment Bankers.
May 1, 2003... Banc One Capital Markets Inc. was hit with the loss of three investment bankers this week -- Brian McGough, the head of its profitable health care group, Los Angeles-based banker Greg Dawley, and Columbus, Ohio-based Boyd Crall, who specialized...

Deal in Focus: Louisiana Flaunts Double Upgrade With $290 Million Sale.
May 1, 2003... Louisiana will come to market with $290 million of general obligation bonds later this month, its once-troubled credit bolstered by improved ratings that should reduce borrowing costs. The bonds will be sold competitively on May 15 via...

FLORIDA: Solid Refunding.
May 1, 2003... Orange County officials plan to issue about $40 million of solid-waste revenue refunding bonds and use cash on hand to refinance all of the solid-waste department's approximately $56 million in outstanding debt, said Fred Winterkamp, county...

FLORIDA: Triple-A League.
May 1, 2003... Coral Springs, located in northwestern Broward County on Florida's east coast, has received an unenhanced Aaa rating from Moody's Investors Service for the upcoming sale of $7.24 million of general obligation refunding bonds. The Series...

LOUISIANA: Don't Save the Date.
May 1, 2003... Fewer opportunities to approve bond sales could be on the horizon thanks to a bill aimed at eliminating the January and July election dates for bond issues, taxes, and other propositions. SB 81, introduced by Sen. Fred Hoyt, D-Abbeville, is...

MISSISSIPPI: Giving Back.
May 1, 2003... Nissan North America, which has received nearly $400 million in bond proceeds from Mississippi to locate and expand its manufacturing operations in the state, is following through on its pledge to donate $1 million to higher education. ...

NORTH CAROLINA: Delayed Issue.
May 1, 2003... The state House of Representatives Finance Committee last week approved a bill to move forward the sale of $700 million of general obligation bonds for roads. The bill, HB 48, was placed on yesterday's calendar to be voted on by the full...

TENNESSEE: Snip, Snip.
May 1, 2003... Gov. Phil Bredesen this week said that he might make more spending cuts this year, due to the reluctance of the General Assembly to implement policies he described as long-term solutions to the state's structural budget imbalance. Bredesen...

WEST VIRGINIA: Double Debt.
May 1, 2003... As war fears recede and consumer sentiment gets a boost, at least two West Virginia issuers -- the state's Hospital Finance Authority and Water Development Authority -- are mulling bond sales. The Hospital Finance Authority expects to sell...

Florida Talks Special Session as Class-Size, Rail Issues Fester.
May 1, 2003... An impasse late Tuesday between Florida Senate and House Republican leaders over how to spend the state's $52 billion fiscal 2004 budget led to an announcement by Senate President Jim King, R-Jacksonville, that a special session would be...

In Reversal, Maryland Governor Backs Property Tax Hike.
May 1, 2003... Contrary to reports that he would veto a property tax hike, Maryland Gov. Robert L. Ehrlich Jr. did an about-face yesterday and voted with the two other members of the Board of Public Works to increase the state's portion of the tax to pay debt...

Municipal Bond Activities.
May 1, 2003... April 30-May 2 National Federation of Municipal Analysts will host its 20th Annual Conference at the Westin River North in Chicago. For more information contact Lisa Good at 412-341-4898 or lgoodnfmaadelphia.net, or visit www.nfma.org. ...

NEW-ISSUE VOLUME NOTES.
May 1, 2003... The new-issue volume tables are based on information compiled by The Bond Buyer from Thomson Financial's data base on Wednesday, April 30, 2003. All figures are preliminary and subject to revision. Long-term bonds have final stated...

LONG-TERM BONDS: January-April.
May 1, 2003... 2003 2002 Volume No. of Volume No. of Pct. ($000s) Issues ($000s) Issues Chg TOTAL $113,464,900 4,035 $94,023,300 4,345 +20.7 % January 26,662,800 930 21,792,100 ...

LARGEST ISSUES: April 2003.
May 1, 2003... Amount Issuer Date $2,050.0 California, GOs Apr 25 1,673.6 Puerto Rico Highway & Transp. Auth., highways/transit (NM/ref) Apr 10 1,400.0 California, GOs Apr 15 1,018.6 Puerto Rico, GOs (ref) ...

BOND SALES BY STATE: January-April.
May 1, 2003... 2003 2002 State Rank Volume Rank Volume Pct Chg Alabama 26 $870,700 26 $1,295,700 -32.8 % Alaska 37 493,400 39 402,500 +22.6 Arizona 16 2,321,600 8 2,799,400 -17.1...

LONG-TERM BONDS: April.
May 1, 2003... 2003 2002 Volume No. of Volume No. of Pct. ($000s) Issues ($000s) Issues Chg TOTAL $29,288,900 916 $25,835,800 1,224 +13.4 % Development 173,200 20 704,000 47 -75.4...

One-Year Note Index.
May 1, 2003... 2003 Apr 30 1.16% 23 1.17 16 1.15 9 1.19 2 1.12 Mar 26 1.11 19 1.09 12 1.05 5 1.08 Feb 26 1.10 19 1.12 12 1.13 5 ...

Market Indicators.
May 1, 2003... Dollar amounts are in millions Day's 2003 2003 Daily Yesterday Change High Date Low Date Municipal Bond Index 111-11 +3/32 111-11 (4/30) 107-26 (1/9) 40 Average Dollar Price 101.92 ...

Municipal Market Data General Obligation Yields.
May 1, 2003... Aaa Aaa (pure) (ins) Aa A Baa 2004 1.08 1.12 1.12 1.30 1.63 2008 2.44 2.54 2.52 2.81 3.33 2013 3.54 3.65 3.63 3.95 4.43 2018 4.03 4.14 4.12 4.45 4.92...

U.S. Securities Prices.
May 1, 2003... Prices as of 3:45 p.m. EST. Source: GovPx Inc. Treasury Bills Yesterday's Prev. Day's Yesterday's (in percent of discount) Bid/Offer Bid/Offer Bid Yield 1M -- 5/29/2003 1.100/100 1.115/110 1.119 3M --...

Short-Term Tax-Exempt Yields.
May 1, 2003... Apr 30, 2003 Apr 29, 2003 May 1, 2002 Selected MIG-1/SP-1+ Notes California Rans 2 1/2s (MIG-2) (June 03) 1.55 1.55 1.55 Los Angeles Co Trans 3s (June 03) 1.10 1.05 1.45 Texas Trans 2 3/4s (Aug 03) 1.08 ...

New-Issue Balances.
May 1, 2003... (,000 Omitted) * Since initial reoffering + Revised upward since last report Amount Date NEW OFFERINGS Sold Balance $83,865 4/30 Port Authority of New York & New Jersey $83,965 All Sold ...

Reoffering Yields.
May 1, 2003... NRO - Not Reoffered; S.B. - Sealed Bid; SNA - Sold, Not Available Offer Amount Date ($Mil) NEW OFFERINGS 1 Year 5 10 15 20 25 30 RECENT 4/30 3.5 Danville, Ky. (Aaa) 1.10 2.45 3.40 ... ... ... ... 4/30 ...

Municipal Bond Index.
May 1, 2003... Yesterday Previous Day Week Ago The Bond Buyer Municipal Bond Index 111-11 111-08 110-23 Wednesday, April 30, 2003 Maturity Par Call Dollar Conversion Converted Date Date Price Factor Price ...

Municipal Bond Prices.
May 1, 2003... These 40 Bonds are evaluated and priced daily by Standard & Poor's Securities Evaluations. All figures are rounded to the nearest eighth when reported in this table. "Change in Bid" is rounded after calculation. Dollar Change...

Municipal Bond Index Update.
May 1, 2003... The list of bonds used to calculate the Municipal Bond Index was revised after the April 30 pricing. The new coefficient is 1.0192. It was derived by dividing the April 30 index (111.339540) by the average converted price of the new set...

N.Y. MTA's Fulton Street Transit Center to Cost $750 Million.
May 1, 2003... New York's Metropolitan Transportation Authority unveiled a $750 million plan Tuesday night to build a Fulton Street Transit Center in lower Manhattan that would be fully funded with federal recovery money approved after the Sept. 11, 2001,...

Competitive Bond Offerings.
May 1, 2003... ISSUER ST DESCRIPTION AMOUNT ($000s) TIME OF SALE FINANCIAL ADVISER LEGAL OPINION MATURING INSURER MDY'S S&P FITCH BANK-QUAL. LATEST DETAILS Thursday, May 1 Jonesboro SD ##1 AR Ref &...

Competitive Note Offerings.
May 1, 2003... ISSUER ST DESCRIPTION AMOUNT($000s) TIME OF SALE FINANCIAL ADVISER LEGAL OPINION MATURING INSURER MDY'S S&P FITCH BANK-QUAL. LATEST DETAILS Thursday, May 1 Newburyport...

Negotiated Bond Offerings.
May 1, 2003... Tentative dates for negotiated sales of $1 million or more. Please fax all pricing & award Information to 212-989-8442. Week Of April 28 Orange USD CA Certs of Part 20,000 RBC Dain Rauscher -- MBIA -- -- --...

Results of Negotiated Sales.
May 1, 2003... ARIZONA Arizona Board of Regents Apr 29, 2003 $30,805,000 Revenue Refunding Bonds, Series 2003 (2014-5.00 - 2017, 2019-22 Priced to Call Jun 1, 2013) (FGIC Insured) (book entry). Dated May 1, 2003. Due Jun 1, 2013 to...

Results of Competitive Sales.
May 1, 2003... ARIZONA (City) Apr 30, 2003 $44,820,000 General Obligation Bonds, Series 2003 (book entry). Dated May 1, 2003. Due Jul 1, 2004 to 2023. Callable Jul 1, 2013 at par. Winning bid: UBS PaineWebber, at 100.0171,...

Election Results.
May 1, 2003... APPROVED Tuesday, Apr 22, 2003 IOWA Ames Comm SD-$10,000,000 Repair and expand city's high school building Monday, Apr 28, 2003 Imlay City Comm SD-$7,635,000 Addition, technology and improvements Tuesday,...

Better Dividend Plans?: Alternatives Said Less Harmful to Muni Market.
May 2, 2003... The municipal bond market would face less of a threat under scaled-down proposals to exclude dividends from income taxes that are now being kicked around both the House and Senate than under President Bush's proposal to fully exempt certain...

Measure Offers Second Chance to Phoenix Convention Center Project.
May 2, 2003... Phoenix's $600 million convention center expansion may get a new lease on life under a bill introduced in the Arizona Legislature yesterday. Sidelined in February by the state's $1 billion revenue shortfall, the bill would commit the state...

California Approves Bonds, Cuts: 1st Attempt to Fix Gap in a Month.
May 2, 2003... The California Legislature yesterday approved the sale of $1.85 billion of pension bonds along with a package of $1.76 billion in budget cuts, taking the first major steps in a month toward making a dent in the state's massive budget gap. ...

The Digest.
May 2, 2003... New York State, the Port of Seattle, and the Susquehanna Area Regional Airport Authority brought a total of more than $500 million in new loans yesterday while cash bond yields fell two basis points overall. Complete market coverage by Nicholas...

A Clarification.(Correction Notice)
May 2, 2003... General Electric spokesman Peter Stack confirmed Wednesday that the company was looking to sell its life reinsurance unit, but did not confirm that its municipal bond insurer Financial Guaranty Insurance Co. was for sale. He made no comment...

A Correction.(Correction Notice)
May 2, 2003... U.S. Rep. Anne M. Northup, R-Ky., is a member of the House Appropriations Committee. Her committee assignment was misidentified in yesterday's front-page story about a Senate tax-law provision that benefits a Kentucky nursing home. ...

News In Brief: ISM Index Indicates Contraction in April.
May 2, 2003... The overall economy expanded for the 18th straight month in April, while the manufacturing sector contracted for the second straight time, the Institute for Supply Management reported yesterday. According to the ISM's monthly report on...

News In Brief: Non-Farm Production Up 1.6% in 1Q.
May 2, 2003... Productivity outside the farm sector grew in the first quarter, according to preliminary figures released by the Labor Department yesterday. First-quarter estimates show non-farm productivity increased 1.6%, following a revised increase of...

News In Brief: Jobless Claims Fall 13,000 to 448,000.
May 2, 2003... First-time applications for state unemployment benefits fell 13,000 to 448,000 in the week ended April 26, but was still at the second highest level this year, according to data released by the Labor Department yesterday. IFR BondData...

News In Brief: Construction Spending Slumped in March.
May 2, 2003... Construction spending decreased 1.0% in March, Commerce Department figures released yesterday show. Total construction spending dropped to $868.5 billion, following a revised 0.2% rise in February, to a record $877.4 billion, which...

News In Brief: Treasury Details T-Bill Auction.
May 2, 2003... The Treasury Department said yesterday it will pay down $5.601 billion at its weekly auction of 91-day and 182-day discount bills Monday by selling $30 billion to refund $35.601 billion in maturing securities. To be sold are $15 billion...

Thursday's Market: N.Y. State Leads With $252M of GOs; Yields Fall Two Basis Points.
May 2, 2003... New York State, the Port of Seattle, and the Susquehanna Area Regional Airport Authority brought a total of more than $500 million in new loans to market yesterday, while cash bond yields fell two basis points overall. Treasuries were...

DFW Bonds Continue to Thrive in Secondary Trading.
May 2, 2003... A wide variety of investors swooped in to snap up $1.6 billion of airport joint revenue bonds issued this week by the Dallas-Fort Worth International Airport Board, lured by yields above 5% on insured bonds subject to the alternative minimum...

Adjournment Puts Iowa Values Fund on Tap for Special Session.
May 2, 2003... The fate of the proposed $810 million Iowa Values Fund -- a bond-financed economic development initiative -- awaits a special session after the state Senate decided to adjourn yesterday without voting on the program that was approved one day...

Texas Senate Will Support New Tax Measure for Schools.
May 2, 2003... Texas Lieut. Gov. David Dewhurst on Wednesday secured commitments from every member of the Senate that they would vote for a measure to change the way the state finances public education by changing a tax code that places the onus for funding...

Massachusetts House Kills Borrowing Plan.
May 2, 2003... The Massachusetts House of Representatives voted down a proposal that called for the state to borrow $300 million to cover operating costs in the $22.5 billion 2003 budget, which has an estimated structural gap of $3 billion. The proposal,...

Senate Panel OKs $10.5B for Airports Over Three Years.
May 2, 2003... The Senate Commerce, Science, and Transportation Committee yesterday approved a bill that would provide the Federal Aviation Administration's airport improvement program with $10.5 billion over three years, $300 million more than the White...

Banker: Participants Should Understand Tender-Option Bonds.
May 2, 2003... Market participants should understand the intricacies of tender-option bond programs, even if they are not directly involved in them, because they are having an increasingly huge effect on trading and pricing in the municipal market, Nat...

Fund Ratings: Morningstar Revamp Will Add High-Yield, State-Specific Categories.
May 2, 2003... Morningstar Inc. will expand its municipal bond mutual fund rating categories in early June to include separate groupings for high-yield funds and more state-specific funds, a spokeswoman confirmed. The new additions, which will expand muni...

Fund Flows: Muni Funds Stagnate in March, Gaining Only $18 Million.
May 2, 2003... Municipal bond mutual fund net inflows sank to $18 million in March, grinding to a near-halt despite a February uptick, according to the Investment Company Institute. The funds took in a net inflow of $1.73 billion in February, according...

NFMA Honors Four Individuals, GASB for Muni Contributions.
May 2, 2003... The National Federation of Municipal Analysts was expected last night to present awards to four individuals and an organization in recognition of their contributions to the municipal market. Philip Fischer, a municipal strategist at Merrill...

Alabama Forum Aims to Clue Issuers In to the Benefits of Swaps.
May 2, 2003... Interest-rate swaps are flexible and easily restructured, but relatively few muni issuers take advantage of the derivatives that could save them as much as 90 basis points on a deal. That's why finance professionals like Matthew...

Moody's Upgrades Nassau County, N.Y., IFA.
May 2, 2003... Moody's Investors Service is upgrading the Nassau County Interim Finance Authority to Aa2 from Aa3 as the county's fiscal overseer gets set to issue $405 million in sales tax-secured debt. The agency cited the strength and stability of...

Arkansas Senator Lobbies for Wholesale Tobacco Tax.
May 2, 2003... Arkansas Sen. Brenda Gullet, D-Pine Bluff, has asked state Attorney General Mike Beebe to issue an opinion on whether a wholesale tax on tobacco products could be enacted with only a simple majority approval from the General Assembly. ...

Indexes Down on SARS Fears, Lack of Positive Data.
May 2, 2003... The Bond Buyer yield indexes were down this week, with three reaching record lows. Early in the week, the bond market was bolstered by concerns over Severe Acute Respiratory Syndrome, and later in the week by a lack of proof that the economy is...

Maryland's Lieutenant Governor Wants to Cut Loan Rates for Some Homebuyers.
May 2, 2003... Maryland Lieut. Gov. Michael S. Steele announced plans this week to cut loan interest rates for single-family homebuyers who apply for and are approved by the two of the state's mortgage loan programs. The Community Development...

Deal in Focus: Strong UC System to Sell $364M, Though Cuts May Lie Ahead.
May 2, 2003... The Regents of the University of California plan to competitively price $364.26 million in revenue bonds Tuesday to finance the nine-campus system's ongoing need for student and faculty housing, parking facilities, health services,...

ALASKA: And the Mayor Is ...
May 2, 2003... Former Anchorage assemblyman and businessman Mark Begich claimed victory last week in the city's mayoral race after a recount of more than 63,000 ballots. Begich ended with 45.03% of the total vote. Under a charter change approved during...

ALASKA: Hospital Valdez.
May 2, 2003... Fitch Ratings assigned an A rating with a stable outlook to the Alaska Municipal Bond Bank Authority's $19 million of revenue bonds selling next week. The bank is acting as the conduit issuer for the city of Valdez, which will use the...

CALIFORNIA: Living Up to Its Name.
May 2, 2003... Orange County will sell $51 million of airport revenue bonds on Tuesday for John Wayne Airport. Moody's Investors Service assigned a Aa3 underlying rating to the deal -- one of the highest ratings it assigns to a single airport. The...