Municipal New Issuance: Last week’s negotiated calendar totaled to roughly $9.23 billion for the week with the largest deal being the $2 billion New York State Transportation Development Corp JFK Airport Terminal Project issuance which garnered the bulk of the attention this past week. The second largest deal of the week was the $1 billion California Community Choice Financing Authority issue. AmeriVet was in two issues this past week, the first one being the State of New York Mortgage Agency as a Co-Manager which issued $62 million in tax-exempt bonds and $37 million in taxable bonds. The second issue AmeriVet participated on was the $14 million Maryland Department of Housing and Community Development deal as a Selling-Group-Member.

Municipal Secondary Trading: The final week of November had a secondary volume of about $53.8 billion with about 54% of the trads being dealer sells. According to Bloomberg, investors put up about $9.2 billion up for the bid with Thursday having the largest in bids-wanted consisting of roughly $2.1 billion.

Municipal Spreads: The final week of November saw muni yields fall once again as 10-year notes fell by 30 basis points to finish the week 2.65%, marking the 5^th straight week of falling yields. With yields falling, we are continuing to see munis richen as 10-year notes are now yielding 62.88% of Treasuries, compared to just one week ago when that ratio was at 66.16%. The muni curve did steepen slightly this past week by 0.5 basis points to 92 basis points.

Last week investors pulled roughly $64 million from municipal-bond funds according to LSEG Lipper Global Fund Flows, this follows the prior week’s inflow of $292 million. Despite have a record month of returns, investors are still hesitant to put money back into the muni markets.

November was a positive month for munis as triple A yields have fallen on an average of 89 basis points, bringing month-to-date returns of 6.35% and pushing year to date returns to just below 4%. November was the sixth-best monthly return on record and the second-best November since 1981. This positive month-to-date return pushed us back into positive territory and is outpacing Treasuries by 331 basis points. Longer duration munis bested shorter duration munis with long bonds returning Municipal Bond Long Index (LM22TR) 10.07% vs 1.45% for the Municipal Bond 1-Year Index (LM01TR). This positive momentum can carry over to December as historically, December has been favorable to muni performance as munis have consistently generated positive returns since 2014.

Municipal Supply: The first week of December will have an expected volume of roughly $6.7 billion with the largest deal being the $1.26 billion New York City Transitional Finance Authority issuance which AmeriVet is participating as a Selling-Group-Member. The next largest deal of the week will be the $773 million Garland Independent School District issue followed by the $750 million State of Hawaii issuance. AmeriVet will be participating as a Co-Manager this week on the $100 million Wisconsin Housing and Economic Development Authority issuance as well.