New York City Pays Record-Low Yield on $750 Million Water Bond
This article is for subscribers only.
The New York City Municipal Water Finance Authority, which has been granted rate increases of 10 percent or more for three consecutive years, boosted its Build America Bond sale by a quarter to $750 million as investor demand pushed yields on the agency’s debt to a record low.
The agency will pay a 5.44 percent yield on its 33-year bonds, a record-low, said executive director Tom Paolicelli, and about 28 basis points, or 0.28 percentage point less than the 32-year Build Americas it sold in June, according to data compiled by Bloomberg. The authority has issued more than $2.2 billion of the federally subsidized debt this year, Bloomberg data show.