| Bonds Online |
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| 5/10/2013Market Performance |
| Municipal Bonds |
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S&P National Bond Index
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3.00% |
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S&P California Bond Index
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2.96% |
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S&P New York Bond Index
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3.13% |
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S&P National 0-5 Year Municipal Bond Index
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0.70% |
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| S&P/BGCantor US Treasury Bond |
400.09 |
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| Income Equities: |
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| Preferred Stocks |
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S&P U.S. Preferred Stock Index
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848.03 |
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S&P U.S. Preferred Stock Index (CAD)
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636.26 |
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S&P U.S. Preferred Stock Index (TR)
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1,701.05 |
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S&P U.S. Preferred Stock Index (TR) (CAD)
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1,276.26 |
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| REITs |
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S&P REIT Index
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174.07 |
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S&P REIT Index (TR)
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425.30 |
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| MLPs |
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S&P MLP Index
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2,469.58 |
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S&P MLP Index (TR)
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5,428.50 |
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See Data
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Muni Bond Sales Reach 10-Month High as New York State Borrows $1.4 Billion |
Bloomberg - Oct. 5, 2010 - By Brendan A. McGrail and Alexandra Harris
New York state, the nation’s largest municipal issuer after California, sold $1.4 billion in taxable and tax-exempt bonds as scheduled offerings of debt reached a 10-month high.
States and local governments are poised to borrow $13 billion this week, the most since the period ended Dec. 11, according to data compiled by Bloomberg. That includes $1.3 billion being sold this week by New York City, the nation’s third-largest issuer.
New York state is “putting the deal into the market when there are a lot of new issues coming,” said Anthony Shields, principal in the public-finance department at Williams Capital Group in New York. The demand for the offering was “not a great showing for a deal this big.”
The competition for buyers amid the glut of supply yesterday forced the state to raise yields on its tax-exempt offering after orders from individual investors were lower than expected, said Jeff Goldstein, senior vice president of municipal trading at New York-based M.R. Beal & Co., senior underwriter on the deal.
Yields on bonds maturing in February 2015 were raised 12 basis points from preliminary pricing, while 10-year rates were increased 17 basis points, he said. A basis point is 0.01 of a percentage point.
The 2015 bonds were priced to yield 1.57 percent, 40 basis points above top-rated debt, according to a benchmark five-year Bloomberg Valuation index. In March the authority sold $366 million in comparable debt priced to yield 1.78 percent, 27 basis points above the index.
Lower-Rated Sale
Yesterday’s sale, for which underwriters had weeks to prepare before negotiating terms with state officials, have a higher proposed yield than lower-rated, state-backed bonds sold in a competitive sale Sept. 28. The Urban Development Corp. offering was won by Citigroup Inc. after bids from eight banks, which set a yield of 1.42 percent for bonds due January 2015, or 30 basis points above the BVAL index. The debt is backed by annual appropriations and rated AA- by Standard & Poor’s and Fitch Ratings.
The $610 million in tax-exempt debt, which is backed by personal-income tax revenue, was sold through the New York State Dormitory Authority, known as Dasny, to fund projects including construction at the State University of New York and City University of New York.
The state also issued through Dasny $595 million in federally subsidized Build America Bonds and $149 million in traditional taxables. So-called PIT bonds are top-rated by S&P, and AA according to Fitch, two levels lower.
New York City, whose debt is rated third-highest by S&P, Fitch and Moody’s Investors Service, tomorrow is selling $500 million in tax-exempts. The following day it will sell $800 million in taxables, including $650 million in Build Americas.
Yield Premium
The sales come as the extra yield investors demand for city rather than state debt has fallen to 4 basis points as of yesterday, from 45 basis points on Jan. 4, Bloomberg data show.
“New York City is getting a slight nod” from investors, said Alan Schankel, managing director of Philadelphia-based Janney Montgomery Scott LLC, which oversees $13 billion in fixed-income securities.
This week’s sales are the first of about $8.77 billion scheduled this quarter by the state, city and their authorities, according to a compilation by the Securities Coordinating Committee, headed by state Comptroller Thomas DiNapoli. Sales in the three months ended Sept. 30 totaled $4.95 billion, Bloomberg data show.
For the complete article visit Bloomberg.com
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