The Port Authority of New York and New Jersey, which slashed its 10-year capital spending plan by 17 percent, is selling $400 million in revenue bonds amid a shortage of tax-exempt debt from the two states.
The pace of borrowing in New Jersey has dropped by almost 50 percent in the past year, as revenue declined and opened a projected $11.5 billion budget deficit for fiscal 2011 which began this month. The state sold $1.2 billion in tax-exempts last year after averaging $2 billion annually from 2007 to 2009, Bloomberg data and state debt reports show.
The dearth of highly rated tax-free bonds from New Jersey will help attract investors to the authority’s debt, according to Mike Pietronico, chief executive officer of New York-based Miller Tabak Asset Management.
The pace of borrowing in New Jersey has dropped by almost 50 percent in the past year, as revenue declined and opened a projected $11.5 billion budget deficit for fiscal 2011 which began this month. The state sold $1.2 billion in tax-exempts last year after averaging $2 billion annually from 2007 to 2009, Bloomberg data and state debt reports show.
The dearth of highly rated tax-free bonds from New Jersey will help attract investors to the authority’s debt, according to Mike Pietronico, chief executive officer of New York-based Miller Tabak Asset Management.