The Port Authority of New York and New Jersey failed today in an attempt to sell $300 million in bonds, a large offering that was met with zero bids. The failure seems to speak more to the continued glacial freeze of the credit markets than it does to the economic stability of the Port Authority, as the credit agencies still gave the agency high ratings.
Regardless of the reason, the fact that the authority was unable to sell bonds could mean big trouble down the road if the agency continues to have such problems. The $30 billion capital plan requires that the agency continually sell bonds to finance the construction of its major projects, including the Freedom Tower and other projects at the World Trade Center.
The agency, in a statement, said the bond offering was done in advance of when the money is needed. read more »