May 21, 2015 |
Atlantic City is attempting today to sell $40.56 million in bonds to repay a state loan issued in December when the financially beleaguered city was shut out of the bond market over concerns that the city would default. This time Atlantic City is using a New Jersey program established by the Municipal Qualfied Bond Act that diverts state aid into a fund to repay bonds. Moody's Investors Service said in a note that the state backing "should improve the city's market access," but warned the city still faces numerous financial challenges, including a $101 million deficit this year and thousands of property-tax appeals.
May 2, 2015 |
The parent company of Borgata Hotel Casino & Spa boosted its 2015 earnings target for the Atlantic City property to $165 million from $160 million after a strong first quarter. Boyd Gaming Corp., of Las Vegas, on Thursday reported first-quarter net revenue for Borgata of $182.6 million, up 9 percent from $167.3 million in the same period a year ago. The market-leading casino's operating profit nearly doubled to $37.8 million from $20.5 million, thanks in part to a property tax benefit.
January 28, 2015 |
It didn't take long for the massive downgrade of Atlantic City's debt last week by Moody's Investors Service Inc. to have an impact on the city's finances. Atlantic City's revenue director, Michael Stinson, said Monday that the city might have to change gears on the refinancing of $12.8 million in debt due next Tuesday. "It may become a negotiated sale rather than a competitive sale," Stinson said, as consequence of the Moody's downgrade on Friday. "It's another complication in the whole situation.
December 23, 2014 |
Ain't it grand that oil prices are dropping? Yes and no. For consumers, yes, the 40 percent drop, down to $55 or so per barrel, amounts to a massive income boost. Each penny drop in gas prices at the pump equals $1.4 billion a year in extra disposable income, according to Bill Dunkelberg, professor of economics at Temple University. The best part, he says, is that American dollars aren't leaving the country like they did in 2008, when $150-per-barrel oil enriched OPEC nations. "Now we're going to start collecting those oil revenues here when prices rebound," he adds.
November 2, 2014 |
In a sign of the ongoing devaluation of assets in Atlantic City, the utility company Pepco Holdings Inc. wrote down the value of its combined heat and power plant there by $53 million, or 64 percent, the Washington company announced Friday. Pepco slashed the value of the plant and related operations to $30 million from $83 million because of "significant adverse changes in the financial condition of its customers and the business climate in Atlantic City," the company said in its quarterly report to the Securities and Exchange Commission.
February 21, 2014 |
As the Philadelphia School District's money struggles continue with no end in sight, the city's charter schools are becoming financially bolder, taking on significant debt. The nonprofit that runs Frankford's Tacony Academy and First Philadelphia Preparatory Charter School, for example, plans to borrow $57 million this month to build a new elementary school and high school. That bond offering, expected to be completed next Thursday, comes on top of $111 million in debt issued last year by four schools, including $55 million for the Philadelphia Performing Arts Charter School and $32 million for Esperanza Academy.
January 24, 2014 |
Should bond investors expect as much Federal Reserve bank influence in 2014? Not so much. And that signals a healthy bond market. Why? We asked Guy LeBas, Janney Montgomery Scott's fixed-income strategist, and he explained that 2013 was "all about what the Fed said they'd do, not what they actually did. " The Fed indicated it would be slowing down and ultimately ending its bond-buying program in 2014. "Given the clarity of the Fed's message, we believe the markets are better incorporating Fed policy, and future increases in long-term interest rates will be more gradual," argued LeBas, based in Center City.
December 31, 2013 |
Investors should celebrate that the Federal Reserve is finally getting out of the investment business. Why? Because it provides some certainty. "The announcement of tapering turned an uncertainty into a certainty. That is always good news for equity investors," said James M. Meyer, who writes the note to clients for the Boenning & Scattergood investment firm in West Conshohocken. "When investors are unsure what to expect, they tend to expect the worst," said Ed Kohlhepp of Kohlhepp Advisors in Doylestown.