Tag: Fidelity Fixed Income

Virgin Islands governor warns about worsening pension crisis

Mary Pat Campbell

Link: https://fixedincome.fidelity.com/ftgw/fi/FINewsArticle?id=202101261722SM______BNDBUYER_00000177-4023-d154-a1f7-44abf1540001_110.1

Excerpt:

U.S. Virgin Islands Gov. Albert Bryan warned the territory’s underfunded pensions were becoming critical and said help is coming for the ailing power system.

Bryan addressed these and other financial topics in his annual state of the territory speech Tuesday evening.

The Virgin Islands government has about $3.35 billion of net pension liabilities.

“Last year, the Government Employees Retirement System sold off about $120 million in assets,” Bryan said. “There is now less than $455 million remaining in the portfolio. This year we will likely sell off even more. The system is in an accelerating death spiral. And for every day that goes by without taking definitive action to reverse the failing of the Government Retirement System, the decisions that ultimately need to be made become more painful and more costly.”

Author: Robert Slavin

Publication Date: 26 January 2021

Publication Site: Fidelity Fixed Income

New York City pension funds to divest $4 billion of fossil fuels

Mary Pat Campbell

Link: https://fixedincome.fidelity.com/ftgw/fi/FINewsArticle?id=202101260811SM______BNDBUYER_00000177-3abd-de06-a5f7-7aff55560002_110.1

Excerpt:

Dovetailing on President Biden’s clean-energy initiatives shortly after taking office, two of New York City’s five pension funds voted to divest their portfolios of an estimated $4 billion from securities related to fossil fuel companies.

The New York City Employees’ Retirement System and New York City Teachers’ Retirement System voted to approve divestments on Monday and the New York City Board of Education Retirement System is expected to proceed on a divestment vote imminently, Mayor Bill de Blasio and city Comptroller Scott Stringer said in a joint statement.

NYCERS and Teachers were valued at $91.4 billion and $77.4 billion as of November, according to data from Stringer’s office. Overall, the five systems have roughly $240 billion in assets under management, constituting the fourth largest public pension plan in the U.S.

Author: Paul Burton

Publication Date: 26 January 2021

Publication Site: Fidelity Fixed Income

Chicago Public Schools tees up first pandemic-era bond deal

Mary Pat Campbell

Link: https://fixedincome.fidelity.com/ftgw/fi/FINewsArticle?id=202101251653SM______BNDBUYER_00000177-3b58-d624-adf7-ff7a48da0001_110.1

Excerpt:

Chicago’s school district is heading into the market for its first COVID-19 era deal with a balance sheet shored up by federal relief.

The district is selling this week $560 million of tax-exempt, dedicated revenue-backed general obligation paper that carries two junk ratings and one at investment grade.

The deal offers $450 million of new money to finance capital work and $110 million of bonds that will refund 2006, 2009 and 2010 debt for savings with no extension of the original maturity. State aid is the pledged dedicated revenue on both pieces with other intergovernmental agreement-related revenue also pledged on the new money series.

Author: Yvette Shields

Publication Date: 25 January 2021

Publication Site: Fidelity Fixed Income

Original Publisher: Bond Buyer