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


This communication is for informational purposes only.  It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction.  All market prices, data and other information are not warranted as to completeness or accuracy and are subject to change without notice. 

Any comments or statements made herein do not necessarily reflect those of R. Seelaus & Co., Inc. its subsidiaries and affiliates.  This transmission may contain information that is privileged, confidential, legally privileged, and/or exempt from disclosure under applicable law.  If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution, or use of the information contained herein (including any reliance thereon) is STRICTLY PROHIBITED.