Municipals seen slightly weaker; Maryland Economic Development to bring $258.55 million bonds

By Sheri Kasprzak

New York, Dec. 18 - Municipal yields were seen mostly higher on Friday to round out a slow week for primary activity.

"We're probably off by 1 or 2 basis points," said one trader reached in the afternoon.

"It's been a really quiet session, even for a Friday. With the holidays, it's going to be light through the end of the year."

Sellside sources have predicted all week that the coming week will be extremely light for both the primary and secondary markets.

Indeed, the only major offering expected for the coming week is $157.265 million in series 2009 revenue bonds from the South Jersey Port Corp. The Camden, N.J.-based corporation is set to sell the bonds through Raymond James & Associates Inc.

Proceeds will be used to fund general capital expenditures.

One market insider reported earlier in the week that the primary activity for the coming week will be a "ghost town."

Even secondary activity is expected to drop off, according to one trader reached Friday.

"We're not expecting to get much volume next week," he said.

"But that's not really surprising. It slows down a lot this time of year."

Amid the light secondary activity, the State of Illinois' series 2009B Build America Bonds were moving. The 5.25% 2034 bonds were seen at 4.77%. The 5% 2022 bonds were seen at 4.06%.

Maryland Economic Development sale ahead

Out on the horizon, Baltimore-based Maryland Economic Development Corp. plans to bring to market $258.55 million in series 2010 economic development revenue bonds, said a preliminary official statement.

The sale includes $170 million in series 2010A bonds and $88.55 million in series 2010B bonds.

Goldman, Sachs & Co. is the senior manager. The co-managers are Citigroup Global Markets Inc. and BMO Capital Markets Inc.

The maturities have not yet been set.

Proceeds will be used to construct new cargo and machinery buildings as well as to fund the acquisition and installation of four cranes at the Seagirt Terminal facilities in Baltimore.

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