AmeriVet Weekly Muni Snapshot

Municipal New Issuance: This past week, the negotiated calendar issued just over $8.3 billion, with the largest deals of the week being the $1.1 billion City of Chicago taxable issue for the Chicago O’Hare International Airport. The City of Chicago also issued $479 million in tax-exempt bonds. The Municipal Improvement Corporation of Los Angeles issued about $844 million.

Municipal Secondary Trading: Secondary trading volume totaled about $32.2 billion with 54% of secondary trading being dealer sells. With the Veterans Day Holiday on Tuesday, clients put roughly $4.63 billion up for the bid, which was down from the prior week’s number of $5.32 billion, according to Bloomberg {MBWDPAR Index}.

Municipal Spreads: This past week, munis yields were relatively unchanged with 10-year notes falling by just .9 basis points to end the week at 2.72%. We did see munis outperform Treasuries over the past week, with the 10-year muni-to-Treasury ratio yielding 65.61%, compared to 66.61% from the prior week. One month ago, that ratio was at 70.47%. With yields relatively unchanged, the muni curve did flatten by .3 basis points to 161 basis points.

According to LSEG Lipper Global U.S. Fund Flows data, investors added roughly $405 million to municipal bond funds last week. This follows the prior week’s inflow of $1.3 billion.

We are just 2 weeks into the month, and munis have been relatively unchanged, only experiencing an average bump of 1.7 basis points across the curve. The 2026-2032 range remained unchanged for the week, while the 2033-2046 maturities saw a 1-2 basis point bump, and the 2047-2055 maturities saw a 2-3 basis point bump. With these small bumps, the past two weeks brought returns for the month to a total of .18%, and year-to-date returns to over 4.1%. The Government Shutdown is over for the time being, so we should expect to see investors focus on the next potential rate cut, as flow of economic data should dictate whether or not the Fed will cut rates in December.

Municipal Supply: The negotiated calendar will have an expected volume of just over $10.4 billion, with 4 issuers covering almost half the calendar. The largest deal of the week will be the $3.8 billion Ascension Health which will use a Corporate Cusip for their $2.1 billion taxable portion. The next largest deal of the week will be the $1 billion New York City Municipal Water Finance Authority’s Water and Sewer System Second General Resolution Revenue Bonds, Fiscal 2026 Series AA, which AmeriVet will be participating in as a Selling Group Member.

Cornell University will issue $1 billion in taxable bonds, also with a Corporate Cusip. The Ohio Water Development Authority plans on issuing $500 million in Loan Fund Revenue Bonds. AmeriVet will serve the Massachusetts Housing Finance Agency as a Co-Managing Underwriter on their $262 million deal in Housing Bonds, 2025 Series C (Non-AMT) (Sustainability). AmeriVet will also be participating as a Selling Group Member for their $25 million Housing Bonds, 2025 Series D (Non-AMT) issuance.

Have a great week!