United Airlines’ US$1bil junk muni deal offers a bond bargain

The deal allows United to sell debt at tax-exempt rates, which are generally lower than corporate bond yields. — Bloomberg

NEW YORK: The municipal-bond market’s lagging run is opening up an opportunity for corporate-debt investors eager to secure extra yield.

Junk state and local government bonds have underperformed high-yield corporate debt during the selloff that raced through fixed-income markets over the past several months, pushing their yields up by more.