The Bond Buyer
“Largest municipal bond deals coming from Texas, Colo. and Calif. “
By Chip Barnett, Christine Albano, July 24, 2020
Municipal yields held steady as the market awaits large Texas and California deals. The new-issue calendar features billion dollar deals from the Southwest and West regions of the country.
The cities of Dallas and Fort Worth, Texas’ (A1/A/A+/AA) are coming to market for the second week in a row, this time with a taxable sale.
The municipal market generally saw a solid, yet quiet, summer week ahead of another upcoming calendar.
“Demand remained stable bolstered by continued municipal fund inflows,” said Shaun Burgess of Cumberland Advisors.
However, there is a preference for attractive returns as municipal yields remain at historic lows.
“Cheap deals where participants found additional spread continue to get oversubscribed,” Burgess said Friday.
As the market prepares for the $1.13 billion Dallas, Texas, deal and the pricing of over $1 billion of California Department of Water Resources revenue bonds, the market will be eager to participate.
“The market should be able to absorb the supply — contingent on yield of course,” Burgess added.
Read the full article here (paywall): https://www.bondbuyer.com/news/go-west-young-investors-biggest-deals-coming-from-dfw-colo-and-calif-issuers
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