AmeriVet Weekly Muni Snapshot
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Municipal New Issuance: The negotiated calendar for the first week of the year totaled to just under $6 billion with the largest deal of the week being the $968 million Board of Regents of the University Texas System. The second largest deal of last week was the $833 million New York State Thruway Authority General Revenue Junior Indebtedness Refunding Obligations which AmeriVet served as Co-Manager on. The Tennessee Energy Corporation issued $725 million. Additionally, AmeriVet participated as a Selling Group Member for the New Hampshire Housing Finance Authority’s Single Family Mortgage Acquisition Revenue Bonds issuance which consisted of $65 million in tax-exempt and $15 million in taxable bonds. |
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Municipal Secondary Trading: Secondary trading volume totaled to approximately $42.93 billion with 52% of secondary trading being dealer sells. According to Bloomberg (MBWDPAR Index), clients put roughly $4.48 billion up for the bid, a notable increase from the prior week’s number of $1.40 billion. |
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Municipal Spreads: This past week, muni saw yields fell by an average of 8.3 basis points, with yields on 10-year notes falling by 10.9 basis points to end the week at 2.61%. With yields falling this past week, munis were able to outperform Treasuries with the 10-year muni-to-Treasury ratio now yielding 62.75%, compared to 64.93% from the prior week. We did see the muni curve steepen by 8.7 basis points to close the week out at 184 basis points. |
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According to LSEG Lipper Global U.S. Fund Flows data, investors added roughly $1.5 billion to muni bonds funds over the past week. This follows the prior week’s inflow of $751 billion. With just one week into the new year, munis are off to a strong start as we saw yields fall throughout the curve. The front end saw the largest gains with 2027-2037 maturities seeing 11-14 basis point bumps while the 2038-2042 maturities saw 9-10 basis points bumps, and the 2043-2056 maturities only seeing a 4-8 basis point bump. This rally comes to no surprise as the last 2 weeks we had no supply due to the Christmas and New Years Day holidays. With investors flush with cash and the lack of supply, investors jumped into the new issue markets as we saw the New York State Thruway Authority bump 9 basis points in the long end from the Retail Order Period to the Final Pricing. Muni returns for the month totaled to .73% with the ten-year range seeing the largest returns of .84% and the 1 year range seeing the smallest gaines of just .27%. |
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Municipal Supply: The negotiated calendar for the second week of January will have an expected volume of just over $9.1 billion with the largest deals of the week being the $1.5 billion New York City Transitional Finance Authority which AmeriVet will be participating in the Selling-Group. The next largest deal of the week will be the $1.2 billion Metropolitan Nashville Airport Authority which is expected to issue $1.25 billion. The Dallas Independent School District plans on issuing $760 million. This week, AmeriVet will be serving as a Co-Manager for the Wisconsin Housing and Economic Development Authority’s Home Ownership Revenue Bonds transaction consisting of $85 million of tax-exempt bonds and $75 million of taxable bonds. AmeriVet will also be participating as a Selling Group Member for the New Hampshire Housing Finance Authority’s $9.5 million Multi-Family Housing Revenue Bonds issuance. Have a great week! |
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