Jan 25, 2012, 3:57 PM EDT
Investors in municipal bonds are worried about Glendale’s finances as the Arizona city waits on an owner to buy the Phoenix Coyotes and either keep them in the city-owned Jobing.com Arena or move them to another market.
Dow Jones reports that Glendale was forced to drop the price on $52 million in debt it sold this week, as bond buyers demanded a higher return to compensate for the perceived risk associated with the in-limbo NHL team.
Christopher Ihlefeld, managing director and portfolio manager at Thornburg Investment Management, tells Dow Jones that “the hockey team has been a real drain on resources” for Glendale.
Now, to be fair, the bond yields remain fairly low – “The longest maturity, in 2033, saw yields go from 3.85% initially to 4.05% in a later pricing” – but if the Coyotes end up moving away at the end of the season, what would investors demand then? According to city spokeswoman Julie Frisoni, there are “hundreds of millions of dollars in economic impact the NHL team brings to the entire region.”
Stay tuned to PHT, your home for all the latest news in the fascinating world of municipal bonds. (Or munis, as we call them around here.)
- Video: Lundqvist helps lead Rangers back to New York for Game 7 1
- Lightning get taken to ‘school of hard knocks’ in third-period collapse 3
- A storm brewing: Rangers rally to force Game 7 with Lightning (Video) 10
- Video: Lundqvist stones Stamkos with left-pad save 0
- Bob Clarke really doesn’t care for tanking 34
- Hitchcock re-signs for one more year in St. Louis 9
- Ducks win crazy Game 5, push ‘Hawks to edge of elimination 32
- WATCH LIVE: Blackhawks at Ducks, Game 5 of Western Conference Final 3
- In the playoffs, sometimes it comes down to the ‘bounces’ 4
- Now feels like a good time to debate Stamkos’ next contract 38
- Reports: Sabres thought they had a deal with Babcock, aren’t happy (174)
- Leafs land Babcock with reported 8-year deal, estimated at $50 million (130)
- Kesler on wearing down Chicago: ‘No human can withstand that many hits’ (75)
- What’s wrong with Lundqvist? (70)
- From healthy scratch to hero: Vermette scores OT winner for Blackhawks (66)