New Orleans seeks RANs to meet payroll

By Robert Slavin

Excerpt from the article:

(October 24, 2025) The city could get permission from the commission to draw down only as much of the $125 million as it needs, Akers said. The RANs would mature in either six or 12 months, he added. 

"We haven't seen any large spread widening in New Orleans credits but remember the name usually trades cheap and there is always a give in the new issue market when one of their credits is selling a new issue," said John Mousseau, vice chairman and chief investment officer of Cumberland Advisors. "That's been true for many years. Some intermediate to longer New Orleans GO bonds seem to be trading in the +40-45 range and I would say that they were close to 30-35 spread at the start of the year so yes, some erosion. 
"The key is to not let the situation worsen and while the note … will help, some budget tightening will certainly happen," Mousseau said. 
The Louisiana Legislative Auditor Mike Waguespack released a report last week projecting the city would have a $159.8 million deficit this fiscal year unless changes were made. 

Click here to read the full article on the The Bond Buyer website. 

 

John R. Mousseau, CFA
Vice Chairman | Chief Investment Officer
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John R. Mousseau, CFA
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The Bond Buyer