Detroit airport authority benefits from record airport bond gains

Victoria
By Victoria August 5, 2014 08:23

Detroit airport authority benefits from record airport bond gains

The Detroit airport authority is set to offer $107 million of debt as airport bonds extend unprecedented growth relative to the $3.7 trillion municipal market.

The Detroit Wayne County Airport Authority will use proceeds from this week’s borrowing to improve airfields, roadways and terminals at the Detroit Metropolitan Wayne County Airport. It will be the first deal for the facility since the city of Detroit filed a record municipal bankruptcy in July 2013.

Airport bonds are rallying as an improving US economy encourages travel. According to data from Bank of America Merrill Lynch, the debt has gained 7.9% this year up to July, beating the market’s 6.8% advance. It marks the fourth continuous year of outperformance, a record since 1993.

Victoria
By Victoria August 5, 2014 08:23