Excerpt from The Bond Buyer…

Larger primary led by DASNY's $1B of school bonds takes focus

By Jessica Lerner & Christine Albano — May 09, 2023

Quoted: John R. Mousseau, CFA

 

 

Despite the attraction for new issues, sources said there is still uncertainty overall in the municipal market stemming from the regional banking crisis.

 

"The market treading on water," Farawell said, noting the latest Federal Reserve Board's rate hike last week.

 

When the Fed stops raising rates, he said that will "close a lot of uncertainty moving forward and it will be data-driven."

 

Others have taken a cautious approach on the buy-side this week, with some loose ends still remaining on the banking crisis spooking investors, according to John Mousseau, president and director of fixed income at Cumberland Advisors.

 

Some resolution of the banking crisis has helped retail investors allay their fears, but many are still on the sidelines awaiting further clarity.

 

"J.P. Morgan buying First Republic takes a big bank portfolio away from overhanging the market, but we still haven't seen anything from the [Silicon Valley Bank] portfolio," he said Tuesday.

 

"Beyond those sales should lie some better markets, particularly as you enter the summer season," Mousseau added.

 

Read the full article (with subscription) at The Bond Buyer: https://www.bondbuyer.com/news/munis-little-changed-as-primary-market-gets-underway

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