New Jersey and New York City, two of the municipal bond market’s largest borrowers, lead the biggest week of state and local government sales in a month as issuers test demand after investors pulled $12.5 billion from muni mutual funds in December.
Atlantic City’s borrowing costs have risen as much as 21 percent since 2012 as the New Jersey gambling resort increases debt to refund property-tax bills appealed by casinos struggling with a seven-year business slump.
Municipal bonds sold by hospitals and health-care providers are rallying the most since 2009, defying a potential $11 billion drop in Medicare funding from federal budget cuts that loom in three months.
The Philadelphia school Kisha Javis’s daughter attends is among buildings that may close in June as the eighth-biggest U.S. district tackles deficits. Investors have backed the fiscal plan, pushing the district’s municipal bonds to a three-month high.
Joplin, Missouri, where 161 people were killed in the deadliest single U.S. tornado in almost 60 years, is joining hurricane-ravaged East Coast towns borrowing to rebuild while municipal yields are near generational lows.
Pittsburgh, the former steel-industry capital that was close to insolvency a decade ago, is thriving again even as Detroit, largely abandoned by carmakers, becomes the biggest U.S. municipal bankruptcy.