Municipal New Issuance: The negotiated calendar for the second week of August saw just over $6.5 billion in issuance with the largest deal of the week being the $832 million Alleghany County Airport revenue bond issue. AmeriVet participated in two deals this week which were The Triborough Bridge and Tunnel Authority which issued $369 million in bonds which was downsized from its original size of amount of $450 million. The second deal AmeriVet was in was the They New York City Housing Development Corporation which issued $185 million in tax-exempt bonds.

Municipal Secondary Trading: Secondary trading for the week totaled approximately $19.7 billion in volume for the week as investors were focused on the primary market issues. As we move later into the summer months, we anticipate secondary trading to remain lighter than usual compared the weekly t historical volumes. According to Bloomberg, customers put up roughly $2.03 billion out in bonds for the bid which Is down slightly from the prior week where customer bids-wanted were $2.13 billion.

Municipal Spread: For the second straight week traders saw municipal bond yields rise with the 10- year benchmark now yielding 0.912% an increase of 3.7 basis points from the prior week. As yields rose for the week, municipal market performance lagged that of Treasuries as the 10-year ratio is now 70.9% compared to a week ago of 67.36%, but still higher from 1 month ago of 61.46%. With the modest increase in rates the municipal bond curve did steepen as well this past week to 146 basis points a widening of 6.5 basis points.

According to Refinitiv Lipper US Fund Flows data for the 23rd straight week municipal-bond funds saw a weekly gain as investors added $1.87 billion to those funds which follows last weeks $1.23 billion increase. The steady week to week increases saw $493 million go into high-yield funds as those funds are experiencing a larger portion of new money inflows as investors still are searching for funds offering a higher rate of return. Municipal market has performance has seen a complete reversal from the earlier effects of the coronavirus pandemic which had decimated the sector back in March 2020. Since then, municipal bond funds have seen 66 weeks of positive inflows totaling to $149 billion and only 2 weeks of small outflows which were technically driven. Of the $149 billion in inflows nearly $60 billion has entered the market in 2021 marking it as one of the heaviest year-to-date of inflows on record. With 2021 municipal issuance currently standing at $270 billion (up 6% vs last year) and the record pace of inflows, this is setting up a strong technical backdrop for the sector, and higher valuations. If you include the more modest level of supply, the potential for higher taxes, and the $45 billion of reinvestments in August all these factors are pointing to tighter credit spreads and Option-adjusted spreads to multi-year lows.

Municipal Supply: This week the negotiated calendar will have an expected volume of just over $8.9 billion, which is welcomed by investors and portfolio managers have been looking for more supply. The three largest deals of the week which will comprise just over a third of the supply. The $ 1.2 billion New York Liberty Development Corporation Green bonds for the 4 World Trade Center Project is the largest issue, followed by $1.2 billion Miami-Dade County Seaport Revenue bonds financing. The City of New York General Obligation Bonds which AmeriVet will be part of the syndicate will be issuing $1.2 billion in tax-exempt bonds.