Municipal Markets

California Earthquake Prices With 165-Basis-Point Spread on 2% Premium Increase

October 29, 2014

The California Earthquake Authority sold $350 million of taxable revenue bonds Tuesday, rated A3 by Moody’s and A by Fitch. Bonds maturing in 5 years were priced at par to yield 2.81 percent, compared to 1.45 percent for a five-year bond on Bloomberg’s A-rated revenue bond scale. Investors were able to get an extra 165 basis points

Key West Utility Sells With Wider Spreads on Declining Revenue

October 22, 2014

The Utility Board of Key West,sold $40 million of electric system refunding revenue bonds rated A1 by Moody’sand A- by Standard & Poor’s. Bonds maturing in five years yielded 1.55 percent, 19 basis points above Bloomberg’s A-rated revenue bond scale. Debt maturing in 10 years yielded 2.69, 31 basis points above the A-rated revenue bond scale Tuesday.

Cities Hiring Most Since 2008 as Economy Eases Fiscal Strains

October 15, 2014

More U.S. cities are hiring than at any time since the Great Recession as the reviving economy and rising property taxes allow higher spending for a second straight year, according to a report released Tuesday. One-third of cities and towns expanded their workforces this year, compared with reductions in 18 percent, according to an annual survey

Average Daily Bids Wanted Decline in 2014, Tracking Drop in Muni Yields

October 8, 2014

Average daily bids wanted fell to a low of 1,626 in August from a year-to-date high of 2,564 in January even as issuance in August rose to $27.01 billion from January’s $18 billion. The decline in bids wanted fell with Bloomberg’s 10-year muni yield, which dropped to 2.17 percent at the end of August from 3 percent

Note Sales Lowest in at Least Eight Years on Improving Economy

October 1, 2014

Note sales this year are the lowest in at least eight years as municipalities are finding less need for short-term debt to plug cash shortfalls. Note sales as a percentage of total issuance fell to 14.2 percent, down from 15.5 percent in 2013.States and municipalities sold $34.15 billion of short-term debt, down from $54.8 billion in

Muni Slope Steepens to One-Month High as Long-Term Bond Yields Rise

September 24, 2014

The two-year to 30-year slope of the muni yield curve steepened to its highest in over a month as longer-dated bond yields increased. The difference between two-year and 30-year yields rose to 2.89 percent, the widest spread since Aug. 15 when the difference was 2.91 percent. The 30-year yield rose 11 basis points over that period to yield

Cleveland Clinic Sells $400 Million Taxable Century Bonds

September 17, 2014

The Cleveland Clinic Foundation sold $400 million of taxable century bonds last week, priced at par to yield 4.858 percent. On Sept. 11, prices reached a high of 100.36 and fell to a low of 98.66 on Sept. 12. Prices recovered Sept. 15, rising to 99.06. Moody’s rated the debt

Guam Power Readies Revenue Bond Sale as Debt Service Balance Increases

September 10, 2014

The Guam Power Authority is expected Guam Power Authority to sell $76.5 million of revenue bonds maturing between 2017 and 2044. The chart shows historical and projected operated revenue and expenses and the balance available for debt service. Operating expenses are expected to increase to $369.3 million in fiscal year 2018 from $339.8 million in fiscal 2009. Operating revenue

Inflows Increase Threefold in August as Nuveen, Wells Fargo Lead Gains

September 3, 2014

Investors poured $1.56 billion of new Fund Flow Winners, Losers cash into municipal bond funds that report weekly to Lipper US Fund Flows in August, compared to $472.3 million in July. Nuveen, Wells Fargo and Invesco pulled in more money in August than in July, reporting $569 million, $196 million and $114 million, respectively. OppenheimerFunds also saw outflows

Some Equity Funds Buy Puerto Rico GOs

August 27, 2014

Franklin Resources Inc. is leading money managers in adding junk-rated Puerto Rico bonds to mutual funds that focus on equities or other asset classes. The companies bought GOs as prices on Puerto Rico debt set record lows this year on speculation the U.S. territory and its agencies would default. The firms join hedge funds and other non-traditional buyers of