Municipals little changed to slightly firmer; $7 billion of new issues expected in coming week

By Sheri Kasprzak

New York, July 5 - Municipals remained mostly flat on Thursday with some slight firmness seen 10 years and out as the market got back down to very light business following the Independence Day holiday, market sources reported.

"The week has been a wash really," said a trader reached in the early afternoon.

"No pricing. No trading. Very, very little going on."

Although this week provided very little volume, the week ahead will provide about $7 billion of new issues, said Alan Schankel, managing director with Janney Montgomery Scott LLC.

"Through six months, new issue volume has been strong, with the $190 billion half-year total 63% ahead of the same period in 2011," Schankel wrote Thursday.

"Beneath the headline numbers, a look at new money total tells a different story. Issuance for new projects and purposes is only 13% ahead of last year, but refunding totals are more than double last year. Ultra-low interest rates encourage refinancing, but these issues tend to add minimal technical pressure since the increased supply is offset by the cautious approach to new spending taken by state and local issuers. The total amount of municipal debt outstanding is shrinking, falling from $3.79 billion in 2011 to $3.73 billion at the end of 1Q."

NYC Transitional deal ahead

Looking to upcoming offerings, the New York City Transitional Finance Authority announced plans Thursday to price $850 million of fiscal 2013 series S-1 building aid revenue bonds, said a preliminary official statement.

The bonds will be sold on a negotiated basis with J.P. Morgan Securities LLC as the lead manager.

Proceeds will be used to pay a portion of the costs of one or more of the five-year plans approved by the authority for educational facilities.

Miami-Dade preps sale

In other new-issues news, Miami-Dade County, Fla., plans to come to market with $540 million of series 2012 transit system sales surtax revenue bonds, said a preliminary official statement.

The bonds (A1/AA/AA-) will be sold on a negotiated basis with JPMorgan as the senior manager.

Proceeds will be used to refund and redeem the county's series 2011 bond anticipation notes.

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