Happy Veterans Day, readers! The bond market is closed on Tuesday, but traders have told The Bond Buyer they do not see this holiday impacting trading levels for the rest of the week.
Traders have said the sell-off last week has raised yields to more attractive levels, and investors who have some cash on the sidelines now have a chance to buy bonds priced in the primary and out for bid in the secondary.
A trader in Chicago said he is also optimistic about trading this week because investors recently received more cash from coupon payments and maturing bonds, and now might be the ideal time to invest before Thanksgiving and winter holidays.
There are two deals scheduled to come in the primary on Wednesday, including the retail order period for the largest deal of the week the $775 million tax-exempt portion of the $1 billion total Hawaii general obligation bond sale. Here's a list of the deals expected in the primary on Wednesday.
Primary:
Hawaii is selling $775 million tax-exempt general obligation bonds for retail buyers. The deal consists of two parts: a $575 million GO portion and a $200 million GO refunding section JP Morgan is expected to price. There have been rumors that the Hawaii deal may be delayed after Wisconsin placed its $355.35 million GO refunding deal on day-to-day status on Friday, citing its sensitivity to market conditions in a rising rate environment, but sources close to the deal confirmed the Hawaii sale will happen as scheduled. The tax-exempt bonds will be available for institutional order on Thursday, along with $225 million taxable bonds. The bonds are rated AA2 by Moody's Investors Service and AA by Standard & Poor's and Fitch Ratings.
The Missouri Joint Municipal Electric Utility Commission is scheduled to sell $193.7 million bonds. Wells Fargo will price the issue, which is rated A3 by Moody's and A-minus by S&P.
Again, enjoy your holiday and be prepared to start trading Wednesday!
