Debtwire Radio

Debtwire Municipals' interviews Emily Brock, Director of GFOA’s Federal Liaison Center. She gives us her take on top lobbying priority for munis in the new year as well as a possible wish list for the tax-exempt market for the comeback of advance refundings and Build America Bonds.

Debtwire Municipals' reporters and analysts discuss the top stories, trends and analytical reports over the course of a most memorable year in 2020.

Debtwire Municipals' Desk Editor Yong Lim interviews Tom Kozlik, Head of Strategy and Credit at Hilltop Securities Inc. He gives us his take on possible stimulus scenarios for state and local governments. We also touch upon his thoughts on Federal Reserve policies, Biden administration economic appointees and possible future downgrades in the muni market. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com

The conversation covers several trendy market topics, such as the rise of SPACS and credit bidding from the secured level

In this episode, Leland Abrams, the CIO of Wynkoop LLC and a lead portfolio manager for the Catalyst Enhanced Income Strategy Fund discusses some of his favorite themes within the legacy non-agency mortgage bond market and his outlook for 2021. Housing fundamentals should be fine, but be aware of bond structure and Libor cessation, he says.

The conversation delves into challenges community banking sector faces, particularly during this covid- period of small business volatility

Debtwire Municipals Puerto Rico-based reporter Eva Llorens discusses the Financial Oversight and Management Board (FOMB) offer to creditors, approved 20 November, that will serve as a basis for negotiations toward a new plan of adjustment for the central government. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com

Olga Kosters, head of private debt secondaries for Tikehau Capital joined the Middle Market podcast to talk about that strategy as well as the current and recent landscape for buying secondary stakes in private credit funds.

Triet Nguyen, VP of Strategic Data Operations at DPC DATA Inc. talks about disclosure in the muni market and how it has evolved. He also examines how disclosure impacts bond pricing and valuation. Debtwire Municipals Caitlin Devitt and Greg Clark round out the discussion group. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com

Jeffrey Stevenson of VSS talks rise of private debt EPISODE DESCRIPTION A discussion on the growth of private debt market and structured capital tends that have been born from consolidation in the banking industry.

Brightline Holdings LLC’s USD 2.4bn Brightline West high-speed train bond offering, which the company days ago yanked off the market, was derailed by its massive size and the project’s speculative nature, according to three portfolio managers. Debtwire Municipal reporters Caitlin Devitt and Kathie O'Donnell do a post-mortem on the failed deal. Related video: https://acuris.wistia.com/medias/y0yhom5qc5 Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com

Debtwire Municipals' reporters and analysts discuss the upcoming ballot referendums and gubernatorial elections in key states and municipalities. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com

Debtwire Municipals' Desk Editor Yong Lim interviews Gary Hall, who is a Partner with Siebert Williams Shank & Co., LLC (the nation's largest minority-owned investment bank). He gives us his take on possible stimulus scenarios for state and local governments. We also touch upon his experiences working in Chicago under Mayor Richard M. Daley's administration and how that city will handle a USD 1bn deficit. Lastly, Gary gives us his thoughts on the municipal market as past Chairman of the Municipal Securities Rulemaking Board. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com

The City of Detroit paid high yield prices to borrow last week when it came to market on its own credit for only the second time since its 2014 bankruptcy, reported Debtwire Municipals Caitlin Devitt. The Debtwire Municipals Mass Transit Capital Funding Tracker highlights infrastructure financing plans of the ten largest US mass transit systems. It also includes information from these borrowers’ most recent capital budgets, passenger trends, and federal funds received under provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Debtwire Municipals Head of Research Greg Clark discusses the report. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com

Debtwire Middle Market reporters Giovanna Azevedo and Catherine Perloff spoke with Ted Koenig, President and CEO of Monroe Capital, about the current state of the middle market lending space and how lenders are responding to distressed deals and the uptick in M&A financing. They also discuss government COVID relief programs and what we should expect going forward.

The Puerto Rico Financial Oversight and Management Board (FOMB) appointment of Justin Peterson, managing partner of the Washington DC lobbying firm DCI Group, will result in a conservative majority at the FOMB, in which none of its members reside in the US territory, commonwealth and private officials told Debtwire Municipals' Eva Llorens. See related video: https://www.linkedin.com/posts/debtwire_puertorico-activity-6722224528514273280-qlRY/ New York City’s (NYC) borrowing costs have inched upward during retail sales of its USD 1.1bn general obligation (GO) bonds, with spreads for the GOs jumping roughly 10bps above the benchmark rate since the last time the city came to market, in August. Debtwire Municipals' Chuck Stanley breaks down the deal. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com

Michael Eisenband, FTI Global Co-Leader of Corporate Finance & Restructuring, discusses how the next year of defaults will fare coming off what was a particularly active wave of bankruptcy filings earlier this year.

Columbia Pulp LLC, a struggling Washington State-based straw recycling plant, needs at least USD 83m in fresh capital and two years before it can start to pay back bondholders, according to a consultant’s report for bondholders. Debtwire Municipals' Caitlin Devitt discusses the situation. See related video - https://www.linkedin.com/posts/debtwire_munis-municipalbonds-recycling-activity-6719721706954616833-JdJ6/ In an interview with Debtwire Municipals' Eva Llorens, Puerto Rico gubernatorial candidate Pedro Pierluisi of the New Progressive Party said he will personally deal with all matters related to Puerto Rico’s bankruptcy and did not dismiss the possibility of restarting from scratch the pending plans of adjustment for the commonwealth and the Puerto Rico Electric Power Authority (PREPA). Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com

In this episode, Eric Kaplan, who heads the housing finance program at the Milken Institute Center for Financial Markets, lays down his agenda in another role, the leader of the Fixed Income Investors Network’s mortgage task force. He also discusses upcoming changes to the QM rule and the impact that’ll have for non-agency investors.

For the September edition of the Middle Market Podcast, reporters Bill Weisbrod and Catherine Perloff spoke with Nicole Drapkin, a managing director at Owl Rock Capital and co-head of the firm’s opportunistic credit strategy. Drapkin discussed how her group’s approach differs from Owl Rock’s core direct lending business, and how the market has evolved since the early days of the COVID-19 pandemic in North America.

The City of Bloomington, MN, home to Mall of America, wants to know whether owner Triple Five - which also owns the American Dream entertainment and retail complex in New Jersey — expects to be able to pay second-half property taxes when they are due in October after missing first-half property taxes that were due 15 May. Debtwire Municipals' Kathie O’Donnell and Debtwire ABS’s Maura Sadovi discuss the latest on the retail behemoth. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com

Debtwire Municipals Research team of Greg Clark and Anthia Ma discuss the latest product update which is called Eye on Data, which gives a visual snapshot of a highlighted sector or trend. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com

Las Vegas Monorail filed for Chapter 11 protections in Nevada bankruptcy court last week to clear the way for its sale to the Las Vegas Convention and Visitors Authority, saying service disruptions from COVID-19 have left it without enough cash to continue operating beyond 30 November. Debtwire’s Senior Legal Analyst, Sarah Foss and Debtwire Municipals’ Chuck Stanley discuss the legal and financial ramifications. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com

Florida's Brightline Trains is increasingly challenged, said three portfolio managers and an analyst, as the South Florida rail remains offline after five months and has ended its marketing deal with Virgin Enterprises. Debtwire Municipals’ Simone Baribeau gets us on track with the details. Debtwire Municipals' Eye on Puerto Rico captures principal and interest defaults, draws on reserve funds, and similar events for every Puerto Rico obligor for which we have data. Head of Research Greg Clark discusses the research report. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com

Iron Hound Management was established in 2009 by Rob Verrone to advise on the workouts of commercial real estate loans following the financial crisis. The newfound urgency in workouts due to the COVID-19 economy has him drawing on that experience and more. Rob delivers the state-of-play on how servicers and CMBS investors are handling the distress.

New York’s Metropolitan Transportation Authority (MTA) is poised to make “draconian” measures to bridge a pandemic-driven USD 12bn budget gap that could throw the agency into bankruptcy without federal intervention, MTA officials said during an emergency board meeting. Debtwire Municipals' Chuck Stanley discusses the scenario. The bankrupt Puerto Rico Electric Power Authority's potential agreement with the US Federal Emergency Management Authority, which could make billions of federal dollars available to rebuild the island's ailing power grid, is still very much up in the air, Efran Paredes, the utility's new executive director, said in an interview with Debtwire Municipals' Eva Llorens. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com

Fitch Ratings analyst Chelsea Richardson joins Debtwire Middle Market senior reporter Bill Weisbrod to talk about the Business Development Company (BDC) industry with second quarter earnings in the book. They discuss BDC asset quality, fund level leverage and other BDC portfolio matters.

Pricing services veteran JR Rieger discusses with Debtwire reporters Caitlin Devitt and Kathie O'Donnell how he and two other industry vets are forming a trade association to standardize how municipal bonds in the often-illiquid secondary market are valued. Evaluating and pricing muni bonds is “becoming more of a science, as it should be, and less of an art,” said Rieger, who publishes the Rieger Report LLC and previously worked in S&P’s pricing and index services. Rieger said the association, named for now the Global Association of Securities Pricing Analysts, will be aimed at pricing services vendors as well as pricing analysts at buy- and sellside firms, across securities markets. Accurately valuing municipal bonds, particularly in high-yield sectors that are generally illiquid, has always been challenging and becomes more difficult during economic downturns like the one that sparked turmoil in the muni market in March. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com

For this episode, host Al Yoon chats with Jim Parrott, a nonresident fellow at the Urban Institute and co-owner of Parrott Ryan Advisors, which counsels financial institutions on primary and secondary mortgage market matters. Parrott is critical of the FHFA’s approach to mortgage finance including how its proposed capital rule wrongly approaches the GSEs as if they were banks and crushes the economics of one of their primary risk management tools, credit risk transfer securities.

Two weeks after it failed to clear the market, an Arizona Industrial Development Authority unrated financing for a sports facility returned, trimmed down and featuring enhanced terms to entice skittish investors. Debtwire Municipals Caitlin Devitt gives us the details. The Chicago Board of Education plans to issue bonds for Chicago Public Schools (CPS) in the next few months, said the district’s chief financial officer. Debtwire's Patrick Ferguson tells us the situation. The State of Illinois is not ready to say whether it will appeal a recent court decision that revives a lawsuit seeking to void USD 14.3bn of the state’s general obligation (GO) bonds. Debtwire's Caitlin Devitt explains the story. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com

A State of Hawaii taxable general obligation (GO) bond deal was upsized to USD 995m from USD 900m amid investor demand, with spreads in the 10-year maturity tightening by roughly 15bps from price guidance circulating this week. Debtwire Municipals’ reporters Eva Llorens and Kathie O’Donnell discuss the deal. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com

For this episode, host Al Yoon gets the lowdown from Athas Capital Group Co-CEO Brian O’Shaughnessy on how non-QM lending has rebounded after the sector was kicked to the curb in March. We discuss Athas’ products and how they are changing just a few weeks after their launch as the competitive landscape changes. We also look at the demand side of the equation as the COVID-19 pandemic lingers.

Creditflux sits down with Guggenheim’s Adrian Duffy to recap the European loan and CLO market in 2020 and discuss what path the recovery will take

For the July edition of the Middle Market Podcast, reporters Giovanna Bellotti Azevedo and Catherine Perloff sat down with James Van Horn, bankruptcy and restructuring lawyer at Barnes & Thornburg, to discuss how the coronavirus (COVID-19) pandemic has affected distressed middle market retailers.

Nuveen’s High Yield Municipal Bond Fund’s and Intermediate Duration Municipal Bond Fund’s top holdings are Energy Harbor Corp, the power company at the heart of a scandal in Ohio that saw its stocks drop by more than 20% last week. Nuveen holds at least 35% of the energy company’s indirect equity and also sits on its board of directors. Douglas Johnston, a Nuveen managing director and senior research analyst, is one of eight board members, according to the company. Debtwire Municipals’ reporters Caitlin Devitt and Patrick Ferguson investigate the situation. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com Here's a brief video recap: https://www.linkedin.com/posts/debtwire_municipalbonds-nuveen-activity-6694324582154850304-y7lZ/

For this episode, host Al Yoon and Debtwire Assistant Editor Maura Sadovi welcome Jen Ripper and John Swarr, investment specialists at Penn Mutual Asset Management. We discuss just how bad commercial and residential mortgage losses could be, and where it’s safe to invest ahead of the fallout. While historical CMBS losses have been low, Penn Mutual’s actions speak loudly: It’s sticking with “up in quality” bonds with lots of credit support.

The fiscal plan for the Puerto Rico Electric Power Authority (PREPA), released by Puerto Rico’s Financial Oversight and Management Board (FOMB) on 29 June, does little to advance the restructuring or to provide useful information about it. The plan’s “debt sustainability analysis”, for instance, accounts for only one-half page of the 89-page document. Debtwire Municipals' Head of Research Greg Clark gives us his take on the fiscal plans. Municipalities that filed for Chapter 9 bankruptcy protections in the years following the Great Recession tended to see improved public safety outcomes, compared with similarly situated jurisdictions, a trend that could have wider implications for public service delivery under municipal bankruptcy, researchers for St. John’s University and Arizona University said during an online conference. Debtwire Municipals' Chuck Stanley explains the outcomes for us. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com

In the primary market, The Regents of the University of California brought USD 2.6bn of AA-rated general revenue bonds via joint senior managers JPMorgan and Wells Fargo Securities. The deal included USD 790m of tax-exempt 2020 Series BE bonds. Debtwire Municipals' Kathie O'Donnell breaks down the deal for us. On 30 June, the FOMB released the commonwealth’s final budget for FY21 (ends 30 June 2021). Because both FOMB and the commonwealth lack recent audited or unaudited financial statements that serve as a baseline in compiling a budget, the document is of dubious value to investors and other parties. Debtwire Municipals' Head of Research Greg Clark gives us his take on the fiscal plans. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com

For this episode, host Al Yoon welcomes Paul Norris, head of structured products at Conning. We discuss how his team is putting money to work in residential mortgage investments when it’s anybody’s guess how distressed the sector will become during the COVID-19 pandemic. We also discuss other ABS sectors he likes, and doesn’t like.

Puerto Rico’s Financial Oversight and Management Board (FOMB) last week announced it has certified 2020 fiscal plans for three of the territory’s highways, water and power authorities and submitted revenue forecasts for a number of entities under its jurisdiction. Debtwire Municipals Eva Llorens explains the current situation. Preston Hollow Capital LLC (PHC), in its second round of litigation with competitor Nuveen LLC, has asked a Delaware Superior Court for a partial summary judgment in its favor over defamation claims. Debtwire's Caitlin Devitt brings us up to date on this legal saga. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com

A Florida-based senior living project with a technical default and a chunk of subordinate bonds that are valued higher than the senior debt illustrates the sometimes-opaque nature of municipal bond pricing, several market participants say. Debtwire Municipals’ Maria Amante, Caitlin Devitt and Kathie O’Donnell discuss the specifics of this trend. In our latest research report, Debtwire Municipals evaluates near-term prospects for the New York Metropolitan Transportation Authority’s (MTA’s) transportation revenue bonds and the Triborough Bridge and Tunnel Authority’s (TBTA’s) general revenue bonds. These are the two most important financing vehicles for the MTA, with USD 30.2bn and USD 8.7bn of debt outstanding, respectively. Debtwire Municipals Head of Research Greg Clark breaks it all down. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com

Debtwire Middle Market reporters Bill Weisbrod and Catherine Perloff spoke with Todd Koretzky a partner in Allen & Overy’s leveraged finance group about how direct lending deals have changed from the frothy pre-pandemic market and how they’ve evolved as the virus’s economic impact comes into sharper relief. They also discuss how the downturn will affect firms’ individual strategies and the private credit industry as a whole.

VIDEOCAST: Law in Motion on the new UK restructuring plan by Debtwire Radio

For this episode, the team hosts Gregory Michaud, head of real estate finance for Voya Investment Management. We discuss not only where insurance money is being deployed in commercial real estate but drill down to the origins of some opportunities, like financings stranded when the CMBS market seized up in March.

American Airlines brought to market a USD 360m deal in tax-exempt airport facility revenue bonds that was oversubscribed from USD 100m at 5.5-5.6% yield, amid the most challenging times for the airline industry in recent memory, to finance a terminal expansion at New York’s John F. Kennedy (JFK) airport. Debtwire Municipals Chuck Stanley discusses the bond sale. Colleges and universities are unlikely to file for bankruptcy anytime soon as a result of the coronavirus (COVID-19) pandemic – if anything, out-of-court restructurings are a far more likely outcome for some institutions, presenters commented during a webinar presented by Orrick and The Bond Buyer. Debtwire's Maria Amante talks about what she heard during the webinar. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com

Debtwire senior legal analyst Richard Goldman sits down with Morrison & Foerster’s Benoit Lavigne, Matthew Dunlap and John Burge to discuss potential covenant changes to European HY debt documents in response to the coronavirus pandemic.

The City of Chicago faces a USD 1.5bn gap through FY21 and is pinning its hopes on the federal government to plug the shortfall, top finance officials said. Debtwire Municipals Caitlin Devitt discusses the city's precarious situation. JEA filed a lawsuit against former CEO Aaron Zahn alleging he made false and misleading statements that marred the utility in a public scandal, according to court documents. Debtwire's Patrick Ferguson gives us the latest on the ongoing saga. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com

Debtwire senior legal analyst Richard Goldman sits down with Morrison & Foerster finance attorneys Caroline Jury, Benoit Lavigne and John Burge to discuss documentation trends in the European leveraged loan market as a result of COVID-19.

For this episode, host Al Yoon and Debtwire ABS Managing Editor John Wilen host SFA CEO Michael Bright, who lays down his priorities for keeping the ABS markets functioning, with integrity. We provide an update on the phase-out of Libor.

Debtwire senior legal analyst Richard Goldman sits down with Andrew Sagor, Partner and Co-Chair of Baker McKenzie’s North America leveraged finance practice, to discuss liquidity enhancement alternatives for issuers in the COVID-19 era.

New York’s Metropolitan Transportation Authority (MTA) has seen its various revenue streams eviscerated by the new coronavirus (COVID-19) outbreak, but bondholders tell Debtwire Municipals that the essential nature of the authority’s services to the New York City region make it too important to fail, even for a State of New York that is itself stretched to the limits by the crisis. Chuck Stanley discusses the nation’s largest public transit authority. Massachusetts hospitals are showing risk factors for coronavirus (COVID-19) related financial distress, according to a Debtwire Municipals’ analysis of pre-pandemic operating results. Simone Baribeau looks at the financial factors in this quarter's Hospital Watch report. Yong Lim, the Debtwire Municipals desk editor, is the moderator of the podcast. The Muni Lowdown is a weekly podcast recapping the previous week's significant news developments in the municipal bond market. For comments or questions contact paul.greaves@acuris.com