AmeriVet Weekly Muni Snapshot

Municipal New Issuance: For the first week of December, the negotiated calendar had a total volume of just over $14.2 billion for the week, with the largest deal of the week being the $1.5 billion Special Tax Obligation Bonds issuance by the State of Connecticut which AmeriVet participated in the Selling-Group. The next largest deal of the week was the $1 billion California Community Choice Financing Authority Clean Energy Project Revenue Bonds transaction. AmeriVet also participated in the Selling-Group for the Commonwealth of Massachusetts which sold $1 billion of GO & GO Refunding Bonds. AmeriVet was also served as a Co-Manager for the Massachusetts Housing Finance Agency’s Single-Family Housing Revenue Bonds issuance which sold $67 million in tax-exempt bonds and $34 million in taxable bonds.

Municipal Secondary Trading: Secondary trading volume totaled to approximately $45.41 billion with 52% of secondary trading being dealer sells. According to Bloomberg {MBWDPAR Index}, clients put roughly $5 billion up for the bid, a notable increase from the prior week’s number of $2.55 billion.

Municipal Spreads: This past week, munis yields for the week rose slightly by an average of 2.4 basis points across the curve with 10-year notes rising by 1.1 basis points to end the week at 2.74%. Munis did outperform Treasuries this past week despite rising as the 10-year muni-to-Treasury ratio is now yielding 66.37% compared to 68.17% from the prior week. We did see the muni curve steepen this past week by 4.8 basis points to end the week at 168 basis points.

According to LSEG Lipper Global U.S. Fund Flows Data, investors added roughly $736 million to muni bond funds, which follows the prior week’s inflow of $682 million.

With yields rising this past week, muni returns did move lower bringing our year-to-date returns to just above 4%. Muni returns for the month are down .12% with the long-end down the most with returns of -.38% just one week into the month. The 3 year range saw the largest gains with just .08% returns. With the Fed expected to cut rates later this week, we shouldn’t expect too much movement in rates as munis have already priced-in the cut in rates.

Municipal Supply: For the second week of December, the negotiated calendar will have an expected volume of over $10.2 billion with the largest deals of the week being the $2 billion Regents of the University of California General Revenue Bonds transaction which AmeriVet will be participating in the Selling-Group. The second largest deal of the week will be the $1 billion City of Chicago – Chicago O’Hare International Airport Bonds issuance. AmeriVet will also be participating in the Selling-Group for the New York City Housing Development Corporation which plans on issuing $535 million of Multi-Family Housing Revenue Bonds featuring tax-exempt bonds and $422 million in taxable bonds with $225 million being Index Floating Rate. AmeriVet will also be in the Selling-Group for the $28 million New Hampshire Housing Finance Authority’s Multi-Family Housing Revenue Bonds issuance.

Have a great week!