Top-rated municipals improve with Treasuries after Paris attacks; $12.2 billion supply ahead

By Sheri Kasprzak

New York, Nov. 16 – Municipals improved Monday following terroristic attacks on Paris Friday as investors moved to safer havens, market sources reported.

Yields on top-rated municipals fell by as much as 2 basis points as the 10-year Treasury note yield fell by 1 bp and the five-year note yield fell by 1 bp.

Looking to supply, about $12.2 billion of new offerings are expected in the busiest week the market has seen in a while as issuers seek financings ahead of the Thanksgiving holiday.

“The holidays, in general, are when we really see a slowdown, so this surge [in supply] is likely due to a push to get things done before the season sets in,” said one sellsider reached during the afternoon.

Last week, which was interrupted by the Veterans Day holiday, the market saw less than $5 billion.

Florida deal rescheduled

Moving to the week’s calendar, the Florida Development Finance Corp. is slated to price $1.75 billion of series 2015A-B All-Aboard Florida Passenger Rail project surface transportation facilities revenue bonds (Aa2/AA+/AA+).

The offering had been scheduled for last week, but a lack of investor interest led to a postponement.

BofA Merrill Lynch is the senior manager.

Proceeds will fund a commuter rail linking Miami with Orlando International Airport. Some investor groups have suggested the rail will not attract enough passengers to make the project profitable.

Connecticut readies G.O. bonds

Coming up on Tuesday, the State of Connecticut is on tap to price $650 million of series 2015 G.O. bonds through Barclays.

The offering includes $585 million of series 2015F G.O. bonds and $65 million of series 2015G green bonds.

The proceeds will fund capital and water pollution control projects in the state.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.