Tuesday, August 1, 2017

Municipal Bond Market

Munis finished unchanged on Monday as traders expect $7.2 bn of new supply to hit the market this week. Bank of America is set to price the Bay Area Toll Authority of California’s $1.1 billion revenue bond offering for the San Francisco Bay Area Toll Bridge today for institutions. The deal, which is rated Aa3 by Moody’s and AA by S&P, consists of $550 million of senior bonds and $550 million of Series 2017-I index-rates and Series 2017 S-7 fixed-rated subordinate bonds. Today we will also see Wells Fargo Securities price the Washington Metropolitan Area Transit Authority’s $496.5 million of Series 2017B gross revenue transit bonds in a deal rated AA-minus by S&P and Fitch. Tomorrow’s primary market looks a little quieter. Bank of America is set to price $222 million of North Carolina grant anticipation revenue vehicle refunding bonds in a deal rated AA by S&P and A2e by Moody’s.