Municipal yields close flat; primary supply expected to be light when market cranks back up

By Sheri Kasprzak

New York, Dec. 23 - The holidays kept municipal activity, both primary and secondary, very light, and yields were mostly unchanged, market insiders reported Friday.

The only soft spot of the market was out around 30 years, said one trader, where yields were up by about 4 basis points.

"It's been really quiet, of course, given the holidays," said the trader.

"It's mostly flat, but out long, there's a bit of weakness."

According to Doug Harsham, a trader with Raymond James & Associates Inc., municipal supply was manageable over the past few weeks and met with steady demand.

"Municipals have been amazingly steady over the last several weeks," he said.

"Supply has been manageable, and demand continues to be strong. Yield comparisons have been favorable for municipals."

Little supply after holiday

When the market does get back down to business after the Christmas and New Year holidays, supply will be light.

The supply will include a $170.64 million deal from the Texas Tech University System on Jan. 5. The university system plans to price series 2012A revenue financing system refunding and improvement bonds through RBC Capital Markets LLC.

The proceeds from the sale will be used to acquire, purchase, construct, renovate, improve, enlarge and equip property, buildings, structures, facilities, roads or related infrastructure for the university system, as well as to refund certain outstanding commercial paper notes and outstanding parity obligations.

The Suffolk County Water Authority of New York intends to price $83.64 million of series 2012 water system revenue bonds (/AA+/AAA) competitively on Jan. 5.

The bonds are due 2019 to 2026.

The authority will use the proceeds to refund existing water system revenue bonds.

Harrisburg attorney to appeal

Meanwhile, Alan Schankel, managing director with Janney Montgomery Scott LLC, said Friday that the attorney representing the Harrisburg City Council of Pennsylvania is taking a second stab at appealing the bankruptcy judge's decision to dismiss the city's bankruptcy filing.

"Meanwhile, the state-appointed receiver is working on a recovery plan, after the court's approval to extend the deadline for plan completion to Feb. 6," said Schankel in a report released Friday.

"He is reportedly exploring privatization of water and sewer operations as well as asset sales. More significantly, he has met with and listened to most of the stakeholders in Harrisburg's financial morass."

© 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.