- Bonds will finance the infrastructure revamp at Terminal B
- Redevelopment project is expected to be completed by 2028
The municipal-bond market’s lagging run is opening up an opportunity for corporate-debt investors eager to secure extra yield.
Junk state and local government bonds have underperformed high-yield corporate debt during the selloff that raced through fixed-income markets over the past several months, pushing their yields up by more.
That’s created a gap between debt that United Airlines has sold in the corporate and municipal markets: its muni securities, which are tied to payments it makes on airport leases, are yielding half a percentage point more on a tax-adjusted basis than the airline’s other taxable obligations, according to an analysis by Bloomberg Intelligence.
Bloomberg Markets
By Aashna Shah
November 19, 2024