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Weekly Muni Snapshot | 19 October 2020

Municipal New Issuance: Last week, the negotiated calendar had roughly $11 billion in issuance. The largest deals for the week were the $663 million Kansas City International Airport terminal modernization issue, followed by the $500 million North Carolina Turnpike Authority issue. The market was anticipating the formal pricing for a $3.2 billion Brightline Passenger Rail Project connecting Los Angeles, CA to Las Vegas, NV but the issue was put on day to day pricing status due to investor concerns about financing a speculative project due to deep economic uncertainty brought on by the coronavirus pandemic. AmeriVet was part of 2 syndicates this week, the $88 million New York State Housing finance Agency, and the $88.9 million South Carolina Jobs Economic Development Conway Hospital Taxable Revenue Bonds for which we were a Co-Manager. New issues supply is expected to remain elevated through year end with 30-day visible supply estimated to be at $31 billion.

Municipal Secondary Trading: Secondary trading for the week totaled approximately $26.8 billion according to MSRB with 54% of all trades going to investors as market participants continue to take advantage of the higher yields compared to the past few weeks. Although, we had a holiday shortened week due to the Columbus Day holiday on Monday, bids-wanted from clients was only slightly down for the week of $2.99 billion compared to $3.1 billion the week prior.

For the 2nd straight week investors added about $614 million into municipal bond mutual funds, this followed last weeks strong inflows of $1.7 billion being invested into those funds. For the past 23 weeks, there has only been a single week of outflows which occurred in the last week of September, showing continued signs that investors are still see the value of municipal bonds relative to other fixed income investments.