Munis close flat to firmer ahead of substantial volume; Albuquerque prices $78.87 million

By Sheri Kasprzak

New York, April 16 - Municipals rounded out Monday on a somewhat firmer note, traders reported, and trading action remained light.

Bonds priced in the previous week by the New York City Transitional Finance Authority series 2012E-1 bonds and the Salt River Project Agricultural Improvement and Power District of Arizona were seen firmer.

In the secondary Monday, New York City Transitional Finance's 3.125% 2027 bonds were trading at 2.962% after pricing at 3.19%. The 5% 2037s were seen at 3.288% after pricing at 3.68%.

The authority sold $900 million of series 2012E future tax secured bonds on Wednesday through Barclays Capital Inc. in two tranches.

Elsewhere, the Salt River Project 5% 2034s were trading Monday at 3.2% after pricing at 3.294%. The 5% 2033 bonds were seen trading at 2.69% after pricing at 3.3%.

The Salt River Project district priced $236.19 million of electric system refunding revenue bonds (Aa1/AA/) on Wednesday through Goldman Sachs & Co.

Atlanta sells to retail

Retail order periods on Monday were successful for many of the larger offerings expected this week. The City of Atlanta priced for retail investors its $491.8 million of airport general revenue bonds. Those bonds will finance construction at Hartsfield-Jackson Atlanta International Airport.

"We're still seeing strong retail interest, and that's always a good indicator," said one market source when asked about how retail investors are responding to the new issues in the market.

"Yields are attractive enough to draw them in. They tend to stick with the short bonds, and for several weeks, yields were really going so low that retail turned away. They seem to be back now, so I think yields are just attractive enough now."

Offerings total $9.4 billion

Looking to the week, about $9.4 billion of new issues are expected to hit the market, led by a $950 million sale of general obligation bonds from the Commonwealth of Pennsylvania, said Tom Kozlik, municipal credit analyst with Janney Montgomery Scott LLC.

The Pennsylvania bonds will be sold competitively on Tuesday with Public Financial Management Inc. as the financial adviser.

The bonds are due 2013 to 2032, and the commonwealth plans to use the proceeds to construct, acquire and rehabilitate capital facilities, improve sewage treatment systems and maintain and protect environmental projects, including open space and farmland preservation projects.

Albuquerque brings bonds

Leading Monday's primary action, the City of Albuquerque, N.M., came to market with $78,865,000 of series 2012 G.O. bonds, said a pricing sheet.

The offering included $70,765,000 of series 2012A general purpose bonds and $8.1 million of series 2012B storm sewer bonds.

The 2012A bonds are due 2013 to 2024 with 2% to 5% coupons. The 2012B bonds are due 2024 to 2025 with 3% to 4% coupons.

The bonds were sold competitively with Bank of America Merrill Lynch winning the bid.

Proceeds will be used to finance public safety projects, citizens' centers, libraries, public transportation projects, cultural facilities, the city's zoo and biological park, storm sewers and streets.

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