Demand for $6 billion of bonds sold to finance Florida housing developments shows no signs of waning even after the Internal Revenue Service said debt issued for a project of billionaire H. Gary Morse isn’t tax-exempt.
The Internal Revenue Service ruled that bonds sold by a Florida community-development district that issued $426 million of debt aren’t tax-exempt, a decision with potential implications for hundreds of similar entities.
A former Deutsche Bank AG executive can pursue his civil rights claims against Los Angeles policemen who he says savagely beat him last year while he was in a neighborhood to visit a medical marijuana dispensary.
John Miller at Nuveen Asset Management LLC, who beat all of his municipal bond-fund rivals last quarter, is betting a U.S. housing rebound will help extend the longest rally since 2010 in high-yield local debt.
Detroit bonds trading at 91 cents on the dollar are still too costly for municipal investors after the city’s emergency manager said the U.S. auto industry’s capital may run out of cash and consider cutting debt payments.
Bonds sold to finance Florida housing developments are being issued at the fastest rate in six years as investors seek extra yield from the municipal debt even as 85 percent of such securities have defaulted since 2008.
Investors betting on the takeover of Pittsburgh’s West Penn Allegheny Health System, whose 2007 tax- exempt junk deal is the biggest for a U.S. hospital in more than two decades, are benefiting from a four-year rally in such debt.
Detroit’s emergency manager says “everything’s on the table” to avoid bankruptcy, including bond payments. That hasn’t deterred investors from pushing the city’s relative borrowing costs to the lowest since January.