Las Vegas High-Speed Rail Bonds Test Wall Street’s Risk Appetite
- Yield-hungry buyers eye $3.2 billion in unrated municipal debt
- After deadline extended, deal planned for next week: sources
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Fortress Investment Group plans to sell a record $3.2 billion of unrated municipal securities next week to finance a passenger train to Las Vegas. The pricing will signal how far investors will go for higher returns amid persistently low rates and economic uncertainty.
Morgan Stanley, the lead underwriter, intends to set pricing terms next week, according to people familiar with the matter who asked not to be identified because the discussions are private. The deal is listed as day-to-day. Samantha Kreloff, a spokesperson for Morgan Stanley, declined to comment on the timing.