Munis Unchanged, But With a Firmer Tone

• Published in: The Bond buyer (New York, N.Y. 1982) Vol. 365; no. 32945
• Main Authors: Scarchilli, Michael, Herman, Jack
• Format: Newspaper Article
• Language: English
• Published: New York, N.Y SourceMedia dba Arizent 15.08.2008
• Subjects: Alternative minimum tax; Bond ratings; Capital markets; Economists; Industrial production; Municipal bonds; Treasuries; Unemployment benefits
• ISSN: 0732-0469

"It's somewhat quiet. We're getting a few hits on the short end, but not much more than that," a trader in New York said. "I don't think anyone is really marking their bonds, but it's not exactly going cheaper either. I'd say we're about flat." "There's a firmer tone, but not a lot of business," a trader in Los Angeles added. "It's hard for me to get with this marketplace, only from the standpoint that it seems to be two-sided. I don't get it. It never seems like I'm doing any business, yet business is getting done out there. Most of the [traders] I've talked to don't seem to be doing any business either. There's always some going on, but this week it's like they flipped a switch and said, 'We're not buying this week.' It's kind of weird." Goldman, Sachs & Co. priced $183.1 million of single-family mortgage revenue bonds for the Pennsylvania Housing Finance Agency in multiple series. Bonds from the $15 million Series A, subject to the alternative minimum tax, mature in 2014, 2016, and 2022, and are priced at par to yield 4.70%, 5%, and 5.75% respectively. The bonds are callable at par in 2017. The $2.6 million Series B is priced at par and comprises a split maturity in 2009 which yields 2% and 2.125%, and a 2010 maturity yielding 2.5%. These bonds are not callable. Bonds from the $165.5 million Series C mature from 2010 through 2018, with term bonds in 2023, 2028, 2033, and 2038. Yields range from 2.50% in 2010 to 5.50% in 2038, all priced at par. These bonds are callable at par in 2017. The bonds are rated Aa2 by Moody's and AA-plus by Standard & Poor's.