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Glazed Pearl Onions in Port with Bay Leaves

['3 10-ounce bags unpeeled pearl onions, root ends trimmed but left intact', '3 cups ruby Port', '1 1/2 cups low-salt chicken broth', '4 bay leaves (preferably fresh)', '2 tablespoons dark brown sugar', '1 teaspoon balsamic vinegar']

Using sharp knife, cut X across root ends of pearl onions; place in large bowl. Pour hot tap water over onions; let soak 1 hour. Remove onions from water and peel.
Transfer to large pot. Add Port, broth, bay leaves, and brown sugar; bring to boil, stirring until sugar dissolves. Reduce heat to medium. Simmer until onions are tender when pierced with sharp knife, about 30 minutes. Using slotted spoon, transfer onions to bowl. Boil liquid in pot until syrupy and reduced to 3 tablespoons, about 15 minutes. Discard bay leaves. Stir vinegar into Port reduction. Season to taste with salt. Pour Port reduction over onions. Serve warm or at room temperature. DO AHEAD: Can be made 2 days ahead. Cover and chill. Bring to room temperature before serving.

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