Municipals close mostly unchanged as market awaits $8.1 billion supply; Alameda bonds dominate

By Sheri Kasprzak

New York, May 9 – Municipals were little changed to close out Monday’s session as the market readies itself for another substantial new-issue slate, traders said.

Top-rated municipals were mostly flat with the 10-year muni yield holding at 1.66% and the 30-year bond yield at 2.67%. Last week, the 10-year yield fell 5 basis points and the 30-year 6 bps.

Looking to this week, about $8.1 billion of new offerings are scheduled to price.

Alameda deal ahead

Leading the charge of the week’s new issues, the Alameda Corridor Transportation Authority of California is set to price $661,795,000 of series 2016 tax-exempt subordinate revenue refunding bonds on Wednesday in two tranches.

The deal includes $14.39 million of series 2016A bonds due 2021 to 2025 and $647,405,000 of series 2016B bonds due 2034 to 2037.

BofA Merrill Lynch and Barclays are the senior managers for the bonds (A2/AA).

Proceeds will be used to refund the authority’s series 2004A subordinate lien revenue bonds.

Oregon headlines Tuesday deals

Coming up on Tuesday, the largest offering comes from the State of Oregon. The state is on tap to price $305,805,000 of general obligation bonds (Aa1/AA+/AA+).

Morgan Stanley & Co. LLC and Citigroup Global Markets Inc. are the senior managers.

The offering is comprised of $66,455,000 of series 2016D tax-exempt state projects G.O. bonds, $15,065,000 of series 2016E taxable state projects G.O. bonds due 2017 to 2031, $145,605,000 of series 2016F tax-exempt state projects refunding G.O. bonds due 2017 to 2031, $37.75 million of series 2016G tax-exempt refunding G.O. bonds due 2019 to 2034 and $40.93 million of series 2016H tax-exempt seismic project G.O. bonds due 2017 to 2036.

Proceeds will be used to finance capital improvements and fund seismic improvements to public schools statewide.

© 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.