The Empire State will have a large role in this week's negotiated calendar, with New York City and the Port Authority of New York and New Jersey bringing the two largest deals scheduled.
The timing will be especially helpful to New York-minded buyers looking to diversify their investments with different New York issuers.
The largest deal is a $900 million New York City general obligation deal, comprised of $700 million fiscal 2015 Series A bonds and $200 million of Series B bonds, both with maturities ranging from 2015 to 2034, according to the deal's preliminary offering statement.
The lead manager is Bank of America Merrill Lynch. Ratings were not available on TM3.
The Port Authority plans to issue $833.785 million with two tranches of consolidated bonds, the Series 184 bonds totaling $352.66 million and the Series 184 bonds at $481.125 million, according to the preliminary offering statement.
The lead manager is Citigroup. Ratings were not available on TM3.
The bonds will likely pick up strong bids and be received well, traders agreed. Debt associated with New York City and its Port Authority have a diverse range of buyers, ranging from small retail to large institutional.
The paper will also spark the interest of mutual funds that operate New York state-specific funds. The paper will provide much needed relief in a market where supply has faced a drought across sectors and regions. Additionally, because the debt comes from two different issuers, it allows for buyers to diversify their exposures.
There are no negotiated deals or competitive deals over $50 million scheduled for Monday, according to data provided by TM3.
