Thursday, Apr. 9, 2015

Municipal Bond Market
Munis are slightly stronger this morning after trading weaker again yesterday.  Secondary volume continues to be extremely light with very few secondary offerings and bid-wanted situations actually trading.  Today’s focus should be on the primary yet again and buyers continue to put cash to work in new deals.  The weeks largest deal (North Texas Toll way’s) priced yesterday and was met with strong demand, the 4% of 2038 priced at 4.07%.  30-day supply saw a substantial decline to $8.6bln versus $11.6bln yesterday.

PR benchmarks GOs were unchanged again on light volume. Bonds continue to trade in the low $80.00s (10.10%) after trading as high as $86.625 (9.56%) in mid-March. 2000m bonds traded yesterday @ $81.50 (10.17%).  PREPA debt continues to trade in the high $50’s after news that PREPA will receive a $2bln cash infusion.  Volume has been extremely light in PREPA since the announcement; yesterday we saw only one trade larger than 100m.     

30 Day visible supply: $ 8.6bln

Deals we are bidding:
48mln     Hampton, VA Public Improvement     2018-2034     Aa1/AA+
56mln     Hampton, VA G.O. Refunding     2021-2027     Aa1/AA+