Bonds
Bonds for Florida High-Speed Rail Pop in Market ‘Starved’ for High-Yield Munis
- Florida rail firm tapped muni, corporate bond market last week
- Muni high-yield fund flows helped drive demand for the issue
A Brightline train in Miami, Florida.
Photographer: Eva Marie Uzcategui/BloombergThis article is for subscribers only.
Municipal bonds issued last week for Florida’s private rail operator, Brightline, climbed in the secondary market as investors clamored for new high-yield securities.
Prices on large block trades for the BBB- rated securities issued with a 5.5% coupon rose as high as 105.4 cents on the dollar Tuesday, up from 102.3 cents when they were priced last week. Eager investors drove risk premiums, or the spread over top-rated debt, on the bonds tighter to about 75 basis points from 120 basis points.