Municipal yields flat; Tobacco Settlement Financing preps $1.23 million revenue bonds

By Cristal Cody

Tupelo, Miss., Nov. 27 - Municipal yields stabilized and traded mostly unchanged on Wednesday and eased about 1 basis point to 2 bps on the week, according to a market source.

"It's been a very quiet week," the source said. "With the holiday, it reduces the amount of trades since there's fewer participants in the market. Plus, it's getting closer to year-end.

"In general, the muni market wants this year to end as quickly as possible. It's been a rough year on profits."

The bond markets will close on Thursday for the Thanksgiving Day holiday and will close early on Friday.

Primary activity is expected to be quiet in the week ahead, sources said.

But a few issuers are lining up deals for the week ahead, including the City of Philadelphia, which plans to sell $100 million of series 2013-2014A tax and revenue anticipation notes on Dec. 3.

The Los Angeles Metropolitan Transportation Authority also is scheduled to be in the market with a $452.27 million two-tranche offering of series 2013 Proposition C sales tax revenue bonds (/AA+/AA) on Dec. 4.

Coming up on the horizon, the Tobacco Settlement Financing Corp. intends to price $1,230,620,000 of series 2013 asset-backed revenue bonds, according to a preliminary official statement.

Tobacco Settlement on tap

Tobacco Settlement Financing's offering includes $662,545,000 of series 2013A bonds with serial maturities from 2018 through 2022 and $568,075,000 of series 2013B bonds due 2019 through 2022.

Citigroup Global Markets Inc., Barclays and Ramirez & Co., Inc. are the lead managers of the negotiated sale.

Proceeds will be used to refund all of the corporation's series 2003A-1C and series 2003B-1C asset-backed revenue bonds.

Tobacco Settlement Financing is a subsidiary of the State of New York Municipal Bond Bank Agency.

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