As investors navigate through the $12 billion new-issue calendar for this week, a significant portion of the debt available comes from New York City. With a deal size of $1.8 billion, this offering is the largest on the calendar and follows the city’s $1.2 billion refunding issuance in July. The New York City debt offering
Bonds
The municipal market witnessed a decline in yields on Tuesday, coinciding with an uptick in the primary market activity. This decrease in yields was in contrast to the improved performance of U.S. Treasuries, which saw a rise as equities rallied following softer than expected inflation data. The municipal yield curves, specifically Triple-A rated bonds, experienced
The recent selloff in the U.S. Treasury market has created pressure on municipals, but they managed to outperform their taxable counterparts. This outperformance can be attributed to investors flocking to equities in a risk-on trade due to better economic data. As a result, triple-A yields rose moderately, whereas UST saw significant losses on the short
The underwriting spreads for all bonds have witnessed a significant surge in the first half of 2024, reaching beyond $7 for the first time in 25 years. This increase has been notable, with spreads rising to $7.11 in the first half of 2024 from $3.70 in the same period in 2023. Furthermore, spreads on negotiated
On Wednesday, municipal bonds saw improvement as focus shifted to the primary market. Chicago entered the market after a delay to price its general obligation bond deal, alongside deals from the Triborough Bridge and Tunnel Authority, the Pennsylvania Turnpike Commission, and the Las Vegas Valley Water Department. This positive movement came on the heels of
Dallas Fort Worth International Airport is preparing to enter the municipal bond market with a $750 million deal after receiving a rating upgrade from S&P Global Ratings. The airport’s rating was increased to AA-minus from A-plus, indicating its strong enplanements, history of financial resiliency, and stable debt service coverage. This upgrade reflects the airport’s improved
The Municipal bond market experienced a weaker performance on Thursday, influenced by the rise in U.S. Treasury yields and a rally in equities. This volatility has been particularly evident in the past several trading sessions, leading to fluctuations in both the municipal bond and UST markets. According to Jennifer Johnston, the director of research for
The Omaha City Council recently approved placing a $333.4 million general obligation bond referendum on the Nov. 5 general election ballot. These bond proceeds are intended to fund various projects including sewer construction, streets and parking, public safety and convention center facilities, parks and recreation, highways and bridges, and police and firefighting equipment. According to
Long Island Power Authority (LIPA) is gearing up to price a billion-dollar bond issuance after recent upgrades from Fitch and with a fresh leadership team. The $1.021 billion bond issuance will include both tax-exempt fixed-rate bonds and mandatory tender bonds, aiming to fund capital improvements and retire existing bonds. The bonds are rated A2 by
The month of July saw a significant increase in municipal bond issuance volume, marking the seventh consecutive month of climbing issuance. Several factors contributed to this rise, including front-loaded issuance ahead of the election, a lower rate environment, and a breakneck pace of supply. July’s volume reached $33.935 billion in 576 issues, up 21.2% from