General obligation bonds seen more often; Connecticut prices GO bonds

By Sheri Kasprzak

New York, Dec. 5 - General obligation bonds have been prominent in the municipal market in recent weeks, a market source said, and at least one substantial issue of GO bonds priced Wednesday.

"In terms of trends, we are seeing a lot of [general obligation] bonds," said one market insider.

"That's really not that unusual but it does seem like there are more than usual over the past few weeks."

On Wednesday, $535 million in Connecticut general obligation bonds priced. The deal priced in two tranches with the first tranche, which is tax-exempt, due August 2027 and the other, which is taxable, due August 2012.

Those bonds are rated Aa3/AA/AA.

Another upcoming GO bond set to price early next year, the sell-side source said, is $170 million in bonds from Ohio.

"Obviously, that one is still a ways away so I don't have a lot of details," said the source. "All I know is that it's supposed to price sometime early in '08."

Calendar 'looks quiet'

For the rest of the week, another market source said Wednesday that the calendar looks fairly quiet, except for a few smaller offerings set to price near the end of the week.

"Most of the activity we've seen was earlier this week so it really doesn't look like a lot is coming up," he said. "Next week is another story. Lots of stuff set up for next week so we're expecting lots of activity."

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