“As uncertainty continues to surround the ever-changing tax overhaul plan, municipal bond issuers aren’t taking any chances: They’re conducting a gusher of bond sales at a pace not seen in more than 30 years.
Issuance this week is expected to total almost $12 billion, according to Thomson Reuters, following two weeks that each saw $20 billion in sales.
At the current rate, state and local governments are on track to easily exceed the monthly record of $54.7 billion in bond sales reached in 1985.”
The latest plans to overhaul the US tax code left the tax exemption on muni bond interest unchanged.
“Early signs indicate bond insurers can withstand the recent hurricanes Harvey and Irma with no change in credit ratings, while Maria’s impact may be moot.
Although insurers are still tallying the costs, S&P Global Ratings said Assured Guaranty, Build America Mutual and National Public Finance Guarantee aren’t at risk for a ratings downgrade as a result of Harvey and Irma.” — FMS Bonds
See PZC for a recent example of a dividend cut and share price.
The state of California’s early order period, in which municipal bonds are made available to individuals on a first-priority basis, is today.
An offering in the news …
CALIFORNIA ST MUN FIN AUTH REVENUE OID
REF-CMNTY MED CENTERS-SER A
Interest Rate: 4.00%
Call Features: 2/1/2027 @ 100
Yield to Call: 4.00%
Yield to Maturity: 4.00%
Trump on Muni bond exemption.
“He’s the president-elect, and he said he would keep it,” said Tom Cochran, CEO and executive director of the U.S. Conference of Mayors, following a half-hour meeting with Donald Trump in New York.
In the news …
The Supreme Court has struck down a Puerto Rican law that would have allowed the U.S. territory’s public utilities to restructure their debt. The 5-2 ruling leaves management of the island’s fiscal crisis to Congress.
A sample offering …
RIVERSIDE CNTY CA PUBLIC FIN AUTH OID REF-PROJ AREA #1-DESERT CMNTYS & INTERSTATE 215 CORRIDO TAX ALLOCATION UNDERLYING S&P A
Insurance: Build America Mutual Interest Rate: 3.00%
Call Features: 10/1/2025 @ 100
Yield to Call: 3.00%
Yield to Maturity: 3.00%
Comments: Federally Tax Free
Not Subject to AMT
In the news …
REDONDO BEACH UNIFIED SCHOOL DISTRICT (LOS ANGELES COUNTY, CALIFORNIA)
Issue Title: Election Of 2012 General Obligation Bonds Series C And 2016 General Obligation Refunding Bonds Series A
Type Of Bond/Security: Municipal Bond – General Obligation