Municipals a touch 'richer' in thin market activity; Jefferson County, Ala., bonds volatile

By Cristal Cody

Tupelo, Miss., Nov. 25 - Municipal yields ended Monday slightly better in thin activity over the day, according to market sources.

"There were a few bids but not a whole lot trading," a trader said. "With the short week, it's pretty much a laid-back week all week. A lot of people are taking off for the week or have shortened schedules."

Municipal bond yields ended about "a basis point or 2 richer today, but there's really not a whole lot of activity," the trader said.

Elsewhere, trading in the "largest tranche from Jefferson County, Ala., was all over the map," according to a RBC Capital Markets note on Monday.

"The subordinate lien issue maturing in 2053 with a 6½% coupon, originally priced to yield 6.85%, traded as cheap as a 7% but then back at a 6.842%," the note said. "A block of insured, senior lien Jefferson County sewer bonds, 51/2s of 2053, traded at 5.65%-5.62% versus the original 5.65%."

Jefferson County's amended Chapter 9 plan of adjustment was confirmed on Friday by the U.S. Bankruptcy Court for the Northern District of Alabama.

New municipal primary supply will be miniscule with a handful of deals expected over the short week, market sources said.

Philadelphia to sell TRANs

The City of Philadelphia has one deal coming up in early December.

Philadelphia intends to price $100 million of tax and revenue anticipation notes (MIG 1/SP-1+/), according to a preliminary official statement.

The series 2013-2014A notes are due June 30, 2014.

The notes will price through a competitive offering on Dec. 3, according to an official notice of sale.

Public Financial Management, Inc. and Acacia Financial Group, Inc. are co-financial advisers.

Proceeds will be used to provide cash to supplement the receipts of the city in the general fund.

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