Munis hold steady as investors move back to stocks; Indianapolis bond bank completes deal

By Sheri Kasprzak

New York, March 17 - Municipals closed out the day flat as investors moved back toward riskier investments like stocks, said market insiders. Despite sinking Treasuries and booming stocks, munis avoided major movements in either direction, said a trader.

"Treasuries are taking a hit, but we're steady," he said.

"For the most part, we're flat. It's pretty surprising since we've been following Treasuries pretty closely. I think a lack of supply is probably helping keep us afloat. There's practically no pressure on yields right now."

Indianapolis brings bonds

Meanwhile, Thursday's light primary action was led by the Indianapolis Local Public Improvement Bond Bank's sale of $96.95 million of series 2011 bonds.

The bonds (Aa2/AA/) were sold through J.P. Morgan Securities LLC.

The deal included $81.64 million of series 2011A Midwestern disaster area bonds and $15.31 million of series 2011B taxable bonds.

The 2011A bonds are due 2021 to 2030 with term bonds due in 2033 and 2036. The serial coupons range from 5.25% to 5.5%. The 2033 bonds have a 5.5% coupon priced 102.662. The 2036 bonds have a split maturity with a 5.25% coupon priced at 97.954 and a 5.75% coupon priced at 103.633.

The 2011B bonds are due 2015 to 2021 with coupons from 2.913% to 4.813%, all priced at par.

Proceeds will be used to make a loan to NOS Innovation Partners LLC to construct, equip and design one or more economic development projects for the city.

Williams College bonds price

In other pricing news, the Massachusetts Development Finance Agency sold $93 million of series 2011 revenue bonds on Thursday for Williams College, said a pricing sheet.

The deal included $50 million of series 2011N variable-rate bonds and $43 million of series 2011O revenue bonds.

The bonds (Aa1/AAA/) were sold through JPMorgan.

The 2011N bonds are due July 1, 2041 and are floating-rate bonds.

The 2011O bonds are due 2013 to 2031 with a term bond due 2036. The coupons range from 3% to 5%.

Proceeds will be used to refund the college's series E bonds.

The college is located in Williamstown, Mass.

New York's MTA preps deal

Looking ahead, the Metropolitan Transportation Authority of New York City is set to price $130 million of series 2011A dedicated tax fund refunding bonds, said a preliminary official statement.

The bonds will be sold through Jefferies & Co. and Jackson Securities Inc.

The bonds are due 2012 to 2021.

Proceeds will be used to refund the authority's series 2001A bonds.

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