Municipals weaken along with Treasuries; Los Angeles County MTA brings $138.96 million deal

By Sheri Kasprzak

New York, May 14 - Municipal yields were off a touch on Tuesday along with Treasuries, market insiders reported.

Municipal yields were seen up by 2 basis points to 3 bps, said one trader.

"We're seeing a focus on primary," the trader said.

"Trading is relatively light. What's pricing seems to be getting good reception."

National Public Finance Guarantee upgraded

Looking to bond insurance news, Standard & Poor's upgraded muni insurer National Public Finance Guarantee to A. The ratings agency initially upgraded the company's rating to BBB from BB early last week.

The move follows a $1.6 billion settlement between Bank of America and National. Additionally, MBIA Insurance Corp. settled with Societe Generale, the last of a group of banks fighting against the insurer's 2009 reorganization.

National insures $324 billion notional amount, or 8.7% of the $3.7 trillion outstanding municipal bonds.

L.A. County MTA bonds price

Among the new issues priced competitively Tuesday, the Los Angeles County Metropolitan Transportation Authority brought $138.96 million of series 2013A Proposition C revenue refunding bonds, said a pricing sheet.

The bonds (Aa3/AA+/) were sold competitively with J.P. Morgan Securities LLC winning the bid, said Terry Matsumoto, chief financial services officer for the authority.

"We are not required to sell competitively," Matsumoto said Tuesday.

"We take market conditions and other factors into consideration."

The bonds are due 2014 to 2023 with 2% to 5% coupons and yields from 0.20% to 1.91%.

Proceeds will be used to refund existing debt.

Wayne State offers bonds

Elsewhere during the session, the Wayne State University of Michigan sold $81.74 million of series 2013A general revenue bonds, said a pricing sheet.

The bonds (Aa2/AA-/) were sold through senior managers BofA Merrill Lynch and PNC Capital Markets LLC.

The bonds are due 2015 to 2032 with term bonds due in 2034, 2040 and 2044. The serial coupons range from 3% to 5%. The 2034 bonds have a 5% coupon, the 2040 bonds have a 5% coupon, and the 2044 bonds have a 4% coupon.

Proceeds will be used to construct and equip a multidisciplinary biomedical research center, renovate classrooms, construct a new laboratory and make upgrades to the electrical system.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.