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Municipals close week on a stronger note; Florida Hurricane Catastrophe Fund to price deal
By Sheri Kasprzak
New York, April 24 – Municipals rounded out a volatile week on a positive note with yields falling by 1 basis point to 2 bps, market insiders said.
The improvement came as Treasuries ended stronger.
Meanwhile, while the market digests this week’s massive calendar, which totaled about $8 billion, investors are looking to a much smaller calendar in the week ahead. New-issue volume will total about $5 billion.
Florida Hurricane preps deal
Looking out on the horizon, the Florida Hurricane Catastrophe Fund Finance Corp. is whipping up $1.2 billion of series 2015 taxable bonds, according to a source close to the deal.
The underwriter and timing of the offering have not been determined yet, but one source said Friday afternoon that pricing could come later this spring.
The offering is being conducted to purchase $1 billion of reinsurance. The Florida legislature and Gov. Rick Scott approved the purchase of up to $2.2 billion of reinsurance in an effort to shift some risk off of the state and on to private reinsurers.
A hurricane has not made landfall in the state since 2005.
Grossmont Health ahead
Grossmont Health Care District of California is on tap to price $209,175,000 of series 2015 general obligation bonds (Aa2) on Tuesday.
The bonds will be sold through Goldman Sachs & Co.
The deal includes $24.51 million of election of 2006 series 2015C G.O. bonds due 2019 to 2027 and $184,655,000 of series 2015D G.O. refunding bonds due 2016 to 2035 with a term bond due in 2040.
Proceeds will be used to finance capital projects and refund the district’s series 2007A and 2011B G.O. bonds.
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