Thursday, Apr. 30, 2015

Municipal Bond Market
Munis are unchanged this morning after trading significantly weaker yesterday.  Liquidity was scarce in morning trading with very few bidders and weak bids as munis followed treasuries.   The market firmed up slightly in the afternoon post FOMC commentary and should carry over into trading this morning.  Attention will be on the secondary market today with such a light new issue calendar.  30-day supply is weaker this morning with $7.5bln scheduled over the next month compared to $8.4bln yesterday.

PR benchmarks GOs were slightly stronger on the day. Bonds traded as high as $80.50 (10.31%) after trading around $80 for most of the last two weeks.  In credit news, PREPA bond holders have offered a 30 day extension.  We expect the extension to have zero impact on PREPA debt as we continue to await PREPAS June 1, restructuring plan.

30 Day visible supply: $7.5bln

Deals we will be bidding today:
65,145     Memphis, TN Gen Improvement     2025-2045     Aa2/AA
94,925     Pennsylvania State State System of Higher Ed Series AQ     2016-2036     Aa3/
44,510     Plymouth, MA G.Os.     2016-2040     /AA