Puerto Rico took one other step in the direction of refunding its Gross sales Tax Financing Corp. (COFINA) bonds Friday, however analysts said whereas the refunding is worth pursuing, They proceed to be skeptical about its success.
The Puerto Rico Fiscal Agency and Monetary Advisory Authority posted an announcement to the EMMA internet website Friday specifying J.P. Morgan Securities Can be the lead underwriter on a sale, with BofA Securities, Barclays Capital, and Morgan Stanley & Co. appearing as co-senior managers.
The Bond Purchaser reported in February that FAFAA was contemplating refunding the COFINA bonds.
Cumberland Advisors Portfolio Supervisor Shaun Burgess said he applauded The problem to refinance the COFINAs however questioned the timing.
The posting to EMMA warns the refunding Isn’t sure and no sales date is provided.
“Puerto Rico utterly Ought to be leveraging the municipal buyside’s ebullience about COFINA by way of a refunding,” said Matt Fabian, companion at Municipal Market Analytics. “Over time, it’s extra probably for COFINA lending demand to fall than to rise, so Puerto Rico appearing sooner vs. later Might be A great suggestion. Theoretinamey, investor demand Additionally Should be Counting on how a lot scoop and toss the commonwealth makes an try to influence by way of the refunding, however in apply it Will not matter.”
Shaun Burgess, portfolio manager at Cumberland Advisors, said, COFINA “stays Definitely one of many strongest Puerto …….