Barclays Sees Value in Some Brightline Muni Bonds After Selloff

Barclays Plc strategists see value in certain municipal bonds from Brightline Trains Florida, the private rail line in Florida that’s been struggling to meet ridership projections.

Debt sold to support the system slumped this month after the company deferred interest payments on some securities. That caused prices to drop and created an opportunity for investors willing to stomach the risk, Barclays analysts led by Mikhail Foux wrote in a research note published Friday.

Brightline’s senior municipal bonds borrowed by a subsidiary operating company, or “opco,” are worth a look at current levels, Barclays said.

“We see value in the ...