Excerpt from “The Bond Buyer”…
Municipal calendar grows to $7B as the summer reinvestment season arrives
By Christine Albano & Chip Barnett
May 31 2019
The food fight among municipal investors is expected to reach new heights with the arrival of the summer reinvestment season, municipal managers and observers said.
Some say it will be the first time in a decade that the municipal market’s lofty prices, severe lack of supply, and intense demand will combine to create a historical repeat of the climate following the financial crisis.
John Mousseau, president and chief executive officer of Cumberland Advisors, agreed that the reinvestment season could far surpass other years given the current market technicals.
“We expect demand to be strong, the amount of reinvestment to be strong, and the overall supply to be light relative to the demand,” he said on May 30.
To make matters worse, said the absence of refunding issues is complicating the existing supply famine — and impacting prices, he noted.
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