NEW YORK (6:45 a.m.) - New Jersey's $2.8 billion pension bond sale captured the coveted spot for deal of the year for its unprecedented size and varied structure, but players also mentioned many other intriguing deals.
"We had a rise in issuance because of the bull market rally," a Texas trader noted.
New Jersey's mammoth pension bond issue was considered unforgettable because of the remarkable reception it received from a broad range of investors and a diverse structure that included current interest bonds, zeros, and income bonds.
Moreover, the pension deal was at the center of a heated debate that extended for months over the legitimacy of the financing, making it one of the most-publicized bond sales ever executed by a state.
Dan Solender, portfolio manager at Nuveen Advisory Corp., cited a few issues he believed to be noteworthy.
The New York Industrial Development Agency's $307 million uninsured deal for the Brooklyn Navy Yard project - priced on Dec. 4 by Goldman, Sachs & Co. - had yield and liquidity, according to Solender.
Solender said he had "a lot of interest in the bonds, which have performed very well since. It was surprising that they got the deal done so well, considering the size and high credit risk."
Top Deals: N.Y.C. Takes Fourth-Quarter Title
NEW YORK (6:45 a.m.) - New York City's gigantic $1 billion bond sale won the title of most memorable deal in the fourth quarter due to its sheer size and the solid demand it fetched on pricing day.
Many buyers saw the sale as their last chance to by a big block of city paper before the end of the year.
J.P. Morgan Securities priced the general obligation deal - which also contained capital appreciation bonds and a taxable piece - on Dec. 9.
The sale represented a milestone for New York City as its top yield - 5.51% in 2024, uninsured - was the lowest for a comparable maturity on a city general obligation bond since 1973.
- Julie Rannazzisi, Pete Gallo, and Brian Louis
Census: Midwest Population Growth Slows
CHICAGO (1:29 p.m.) - Population growth in the Midwest is slowing down, according to a report from the Census Bureau.
In 1997, population in the Midwest grew 0.5%, a decrease of 0.7% over the previous year. The nation's population grew by 0.9% last year, Census said.
The fastest growing region in the U.S. is the West, where the population grew 1.6% in 1997.
- Ann Keeton
Purchasing Managers Report Called Promising
WASHINGTON (10:32 a.m.) - Friday's weaker-than-expected reading on the monthly National Association of Purchasing Management's indicates continuing healthy economic growth, an economist said. The overall NAPM index fell to 52.5% in December from 54.4% in November.
"It's a good report. It shows the economy still enjoying moderate growth with low inflation," said Gary Thayer, senior economist with A.G. Edwards & Sons.
- Jonathan Nicholson
SDC Spotlight: Number of Insured Deals Rises
NEW YORK (2:45 p.m.) - Gilt-edged bonds continued to account for 68% of municipal bond issuance in 1997, according to figures released by Securities Data Co. This number includes both insured and natural triple-A deals.
At the end of 1996, triple-A deals made up 66% of the market. This 2% rise came on the heels of an equal drop in A-rated and triple-B rated categories. The double-A, double-B, and B categories all maintained a stable market share from 1996.
At the end of September 1997, the number of triple-A deals amounted to 71.2% of the total number of municipal issuance, SDC figures showed.
- Julie Rannazzisi
