Tuesday, Apr. 7, 2015

Municipal Bond Market
Munis are unchanged this morning after a quiet start to the week.  Secondary flow was extremely light as buyers waited out some of the larger deals set to price this week.  Today’s new issue calendar is comprised mostly of micro deals with $160mln Knoxville Waters highlighting the calendar.   30-day supply is slightly higher with $11.68bln scheduled versus $10bln yesterday. 

PR benchmarks GOs were unchanged yesterday on extremely light volume. 200m bonds changed hands versus 21mm on Thursday.  Bonds continue to trade around $82.00 (10.10%) after trading as high as $86.625 (9.56%) in mid-March. PREPA debt traded up to the high $50’s on news that PREPA will receive a $2bln cash infusion.  We should see GO debt pretty much unchanged until we receive more clarity on the pricing of a new deal. 

30 Day visible supply: $ 11.68bln

Deals we are bidding:
71mln     Hartford County, MD Series 2015B Refunding     2015-2029
24mln     Knoxville, TN Water System Revenues Refunding     2016-2033
137mln     Knoxville, TN Waster Water System Revs Refunding     2016-2042
90mln     Lawrence, KS G.O.s     2016-2040
27mln     Nashua, NH G.O.s     2015-2034
45mln     Osseo Area School District, MN     2016-2021