Municipal Bond Offerings Fare Better Than Previously
May 05, 2011
In secondary market activity, tax-exempts fell about 1/8 in sparse trading. New pricings included $371 million in Utah Intermountain Power Authority revenue bonds, $46 million of Kansas City, Mo., water refunding revenue bonds, and $81 million of Cleveland parking facilities revenue bonds. The Utah Intermountain issue catered to institutional investors, offering yields above 6% on some maturities to compensate for forward deliveries that don't begin until 2012. Many of this week's issues continued to languish in syndicate hands and in dealer inventories, market participants said. A $38.3 million balance remained in Wednesday's $120 million Connecticut general obligation issue, underwriters said. Not only are retail customers away, but some institutions are starting to sell to free up funds for an anticipated post-Labor Day rush of new offerings.
