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A record year of overall issuance, led by a boom in taxables, tells the story of a growing muni market with a broader, more diverse investor base.
How taxables changed the muni market in 2020
December 24, 2020 12:41 PM
Why the explosive growth of taxable munis could be sustainable
The issuance of taxable municipal securities has leapt to record levels in 2019 against a post-advance refunding backdrop of historically low rates and heightened interest from an expanding pool of international investors.
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CreditSights
Taxable boom may undermine the case for the muni tax exemption
There is a small but growing concern among some municipal market participants that the increasing popularity of taxable muni bonds could begin to undermine the community’s traditional argument to protect the tax exemption.
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Taxables and climate change will move the needle in 2020
The public finance industry is in a particularly positive position to start 2020, with low rates and supply, aggressive demand here and abroad, an increased focus on climate and taxable issuance, and geopolitical uncertainty leading to a continued flight to quality.
There is a general consensus that municipals are poised to perform well in 2020, even if they underperform relative to 2019. But larger than simply price performance should be an increased focus on how this new climate can help the industry evolve into the new decade.
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There is a general consensus that municipals are poised to perform well in 2020, even if they underperform relative to 2019. But larger than simply price performance should be an increased focus on how this new climate can help the industry evolve into the new decade.
Read full story
Taxables, climate change and cyber security
In this Bond Buyer podcast, BlackRock's Sean Carney discusses the new era of challenges for muniland, including climate change and cyber security. He also opines about the growing trend of taxable issuance. Aaron Weitzman hosts.
Listen to podcasthere .
Listen to podcast
Why taxable bonds are a muni market fixture, not a fad
At 30% of issuance so far in 2020, taxable munis are here to stay and will continue to be a force in the municipal market unless tax law changes or rates rise dramatically.
Taxable issuance ballooned to about $70.5 billion in 2019, by far the highest level outside the two years Build America Bonds were sold, 2009 and 2010.
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Taxable issuance ballooned to about $70.5 billion in 2019, by far the highest level outside the two years Build America Bonds were sold, 2009 and 2010.
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Photographer: David Beyda 212-96
First-time muni issuer pricing $100 million of taxable housing bonds
Century Housing, a nonprofit public benefit corporation, plans to price up to $100 million in taxable bonds June 25 to provide funding to develop affordable housing in California.
The pricing orchestrated by sole lead manager Wells Fargo Securities represents the first time Century has tapped the muni market with a muni CUSIP, said Peter Cannava, a managing director with Wells Fargo. It did tap the muni market last year using a corporate CUSIP, Cannava said.
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The pricing orchestrated by sole lead manager Wells Fargo Securities represents the first time Century has tapped the muni market with a muni CUSIP, said Peter Cannava, a managing director with Wells Fargo. It did tap the muni market last year using a corporate CUSIP, Cannava said.
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Refundings propel Midwest volume
Midwest-based municipal bond issuers borrowed $40.4 billion during the first half of the year as record low rates more than tripled refunding activity.
Issuance in the region compared to the first six months of last year rose an overall 24% over 1,837 deals from $32.6 billion in 1,580 transactions, according to data from Refinitiv.
Read full storyhere .
Issuance in the region compared to the first six months of last year rose an overall 24% over 1,837 deals from $32.6 billion in 1,580 transactions, according to data from Refinitiv.
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JAKE CHESSUM
Ford Foundation's $1B social bond deal to aid non-profit organizations
While most environmental, social and governance securities issuance has been focused on green bonds, one of the biggest offerings of social bonds in U.S. history is on the way.
Wells Fargo Securities priced the Ford Foundation’s $1 billion of corporate CUSIP taxable bonds back in June, (Aaa/AAA/NR/NR) that provided grant money directly to non-profit organizations.
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Wells Fargo Securities priced the Ford Foundation’s $1 billion of corporate CUSIP taxable bonds back in June, (Aaa/AAA/NR/NR) that provided grant money directly to non-profit organizations.
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Coronavirus draws MacArthur Foundation into bond market to fund grants
The John D. and Catherine T. MacArthur Foundation will tap the bond market to raise $125 million for grants targeting not-for-profits and communities battered by the COVID-19 pandemic and social injustice, with a particular focus on challenges faced by African Americans.
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The Headshot Truck LLC
Low rates, high taxable issuance, ESG to continue in 2021
Rates will stay low, issuance will soften to end the year but tick back up in 2021, and the municipal market still has room to grow in environmental, social, governance space relative to the global market.
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DavidBeyda.com
The future of public finance is strong
Record-breaking new issuance, a 31% surge in taxable volume and the ability of the municipal industry to rapidly adapt to a work-from-home environment shows the resiliency of the municipal bond market amid the COVID-19 pandemic.
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Led by taxables, a resilient muni market to break issuance records
Municipal issuance is poised to reach the largest total annual volume on record, breaking past the $448.61 billion record set in 2017, driven largely by taxable and refunding issuance.
Amid a global pandemic that has shaken the world, the municipal market will absorb the most aggregate debt in its history in a most volatile year. The primary market was held to a halt in March after the reality of COVID hit, seizing up access for issuers to price bonds.
Read full storyhere .
Amid a global pandemic that has shaken the world, the municipal market will absorb the most aggregate debt in its history in a most volatile year. The primary market was held to a halt in March after the reality of COVID hit, seizing up access for issuers to price bonds.
Read full story
