Tuesday promises to be an exciting day for municipal players, as five of the week's top 10 deals are expected to price. Below, your playbook to attack the day.
Primary (listed in order of largest par amount and descending)
- Top deal of the day, and the week, will be the San Francisco Airport Commission's $480 million International Airport second series revenue bonds. The deal comes in two series - Series 2014A and Series 2014B - both of which are rated A1 by Moody's Investors Service and A-plus by Standard & Poor's. The deal will be brought by J.P. Morgan.
- Next up, the city of Chicago will tap the negotiated market as well with $297 million of second lien wastewater transmission revenue bonds. Brought by Bank of America Merrill Lynch, the deal carries an A3 rating from Moody's and AA-minus from S&P.
- Prince George's County, Md., will bring the largest competitive deal of the week, with a two-part general obligation consolidated public improvement bond issue. Series 2014A will tap the market for $217.850 million and the Series 2014B will be for $30.415 million. The deals will be auctioned at 10:30 a.m. and 11 a.m., respectively. The deal carries the gold-standard triple-A rating from the three major rating agencies and has the ability to impact municipal scale the most.
- After Prince George's, the New Jersey Educational Facilities Authority will offer the second largest competitive deal and fourth largest deal of the day with a $203.355 million higher education facilities trust fund bonds. The deal is set for 11 a.m. The deal is rated A2 by Moody's and A-minus by S&P and Fitch Ratings.
- The city of Augusta, Ga., will tap the competitive market at 10 a.m. with a $183.1 million water and sewerage revenue and refunding and improvement bond (second resolution). This deal is rated A1 by Moody's and A-plus by S&P.
All information is according to The Bond Buyer, TM3, Ipreo, and data provided by Interactive Data.
Secondary
Traders expect secondary activity to pick up on Tuesday mid-morning through the afternoon, following the activity in the primary markets.
Scales
Municipal Market Data's triple-A 5% scale read for Tuesday morning was not available at the time of publication.
Treasury Market
The Treasury market opened on Tuesday relatively flat to Monday's close, with some strength in the intermediate to long end of the curve. The two-year not opened steady at 0.54%, while the 10-year tightened one basis point to 2.58% and the 30-year fell two basis points to 3.33%.
