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Treasurer's office reports $191 million in present‑value savings from recent refinancings; market outlook remains volatile
Summary
Treasury staff said they entered the municipal market six times since July 2025, issuing about $4.4 billion in obligations and generating roughly $191 million in present‑value savings from recent refinancings; they also noted negative outlooks from Moody's and Fitch but no downgrades.
The Office of the State Treasurer briefed the State Finance Committee May 28 on market activity and recent transactions, reporting about $4.4 billion of total obligations sold since July 2025 and $191 million in present‑value savings from roughly $1.6 billion of refinancing transactions.
Secretary Jason Richter told the committee the state conducted six market sales since the previous meeting: two new‑money bond sales, two refundings and two certificates of participation transactions. “In total, that was about $4,400,000,000 of total obligations with about 2,800,000,000 being new money and about 1.6 of that being refinancings,” Richter said, adding the refinancing transactions are expected to produce about $191,000,000 in present‑value savings.
Richter also noted the office received a negative outlook from two rating agencies—Moody's and Fitch—but said the state had not been downgraded and that the outlook did not materially affect pricing on the May transaction. He summarized municipal yields as elevated and said the office will continue scheduled sales, including a COP sale on June 4 and a new‑money bond sale on June 16.
In response to a question from Lieutenant Governor Hackett, Richter said ratings agencies are likely to wait for legislative action before taking further rating steps and that structural budget considerations remain the key credit issues.
