Market in 'sleep mode,' wants early close; Virginia College authority to sell $398.03 million

By Cristal Cody

Tupelo, Miss., Nov. 24 - Most municipal issuers are planning to take a break until after the Thanksgiving holiday with several sales planned for the week of Nov. 30.

On Tuesday, the market was "in sleep mode," Anthony Shields, senior vice president of Grigsby & Associates, Inc., told Prospect News.

Everyone's "looking to an early close tomorrow even though Finra said no more early closes," Shields said.

In the meantime, most of the action seems to be in the short end of the market, he said.

"The bonds du jour are 'kicker bonds,' which are bonds that have short calls (2011-13) and 10-year or so maturities," Shields said. "These give a good yield to maturity when priced to the call and is the structure that clients look to when short rates are too expensive. It is considered a defensive posture."

Looking ahead to the week after the holiday break, the Virginia College Building Authority plans to sell $398.025 million in educational facilities revenue bonds for the 21st century college and equipment program.

The bonds are expected to price through a competitive sale on Dec. 2, according to a preliminary official statement released Tuesday.

© 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.