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John R. Mousseau - In the News




Traders said the New Jersey deal largely set the tone for the market.

A New York trader said there was strong demand for the forward delivery bonds, which are rated Baa1 by Moody’s Investors Service and BBB by Standard & Poor’s.

“The fact that it's a lower-rated transaction is interesting because typically forwards are in the single or double-A rated category,” the trader said.

The $582 million of Series A refunding bonds saw bumps of eight to 11 basis points from initial pricing wires. The forward delivery bonds were also bumped in a repricing.

The oversubscribed New Jersey deal is typical in the current market backdrop, where large lower investment-grade deals are few , according to John Mousseau, president of Cumberland Advisors.

“The market sees the Federal government for now as a gigantic backstop to the market,” Mousseau said. “All incremental yield is being gobbled up. The market is now rich on a nominal basis, as well as a relative basis, and you can tell because coupon spreads are almost non-existent.”

Read the full story at the Bond Buyer website (paywall): https://www.bondbuyer.com/news/nj-a-blow-out-ici-reports-more-inflows-but-weaker-tone-persists

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John R. Mousseau, CFA
Published Date
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The Bond Buyer