Wednesday, March 16, 2016

Municipal Bond Market
Munis are stronger this morning across the curve for the second straight day.  We saw aggressive selling of the front end as buyers continue to raise cash to put to work in the large slate of new deals this week.  New debt offerings have seen extremely strong demand and have been more than 10x oversubscribed in spots.  Westchester Med Center 3.75’s came @ 3.90% and traded up 5bp in the secondary to a 3.85%.  30-day supply is unchanged this morning with $7.20bn scheduled over the next 30 days versus $7.17bn Monday.

In credit news, PREPA is preparing a private placement of $110mln in debt which is a part of the terms from the restructuring deal.  We saw no institutional trades in benchmark GO 8’s of 2035 for the third straight day.  The last trade we saw in the cusip was $71.75 (11.72%) last Thursday.   

30-Day visible supply: $7.20bn

 

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