Mischler Muni Market Market Update for the week of 08-07-17 looks back to last week’s metrics and provides a focused lens on muni bond new issuance scheduled for the upcoming week. As always, the Mischler Muni Market Outlook offers public finance investment managers, institutional investors focused on municipal debt and municipal bond market participants a summary of the prior week’s municipal debt activity, including credit spreads and money flows, and a curated view of pending municipal finance offerings tentatively scheduled for this week’s issuance.

Last week muni volume was about $7.0 billion. This week volume for muni bond issuance is expected to be $7.3 billion. The negotiated market is led by $1.1 billion tax-exempt and taxable bonds for Cleveland Clinic Health System issued by the State of Ohio. The competitive market is led by $1.5 billion tax-exempt and taxable bonds for New York City Transitional Finance Authority, New York, on Tuesday.

Below and attached is neither a recommendation or offer to purchase or sell securities. Mischler Financial Group is not a Municipal Advisor. For additional information, please contact Managing Director Richard Tilghman at 203.276.6656

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Since 2014 alone, Mischler Financial Group Inc.’s  presence across the primary Primary Debt Capital Markets (DCM) space has included underwriting roles in which Mischler has led, co-managed and/or served as selling group member for more than $600 Billion (notional value) in new debt and preferred shares issued by Fortune corporations, as well as debt issued by various municipalities and US Government agencies.

Mischler Financial Group is the securities industry’s oldest minority broker-dealer owned and operated by Service-Disabled Veterans. Mischler is also a federally-certified Service-Disabled Veteran Owned Business Enterprise (SDVOBE).  Mischler Muni Market updates are provided as a courtesy to institutional clients of Mischler Financial Group, Inc.

This document may be not reproduced in any manner without the permission of Mischler Financial Group. Although the statements of fact have been obtained from and are based upon sources Mischler Financial Group believes reliable, we do not guarantee their accuracy, and any such information may be incomplete.  All opinions and estimates included in this report are subject to change without notice.  This report is for informational purposes and is not intended as an offer or solicitation with respect to the purchase or sale of any security.   Veteran-owned broker-dealer Mischler Financial Group, its affiliates and their respective officers, directors, partners and employees, including persons involved in the preparation of this report, may from time to time maintain a long or short position in, or purchase or sell a position in, hold or act as market-makers or advisors or brokers in relation to the securities (or related securities, financial products, options, warrants, rights, or derivatives), of companies mentioned in this report or be represented on the board of such companies. Neither Mischler Financial Group nor any officer or employee of Mischler Financial Group or any affiliate thereof accepts any liability whatsoever for any direct, indirect or consequential damages or losses arising from any use of this report or its contents.

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Quigley’s Corner 09.12.16 Equities Market Volatility and Utilities DCM-NO Correlation

Investment Grade New Issue Re-Cap – Record $1 Trillion Milestone Within Reach
New Historic Volume Record Well Within Reach
Dear “Prudence” – The Beatles, Bonds and the World
Deal Dashboard for Interstate Power & Light Company
Global Market Recap
IG Primary & Secondary Market Talking Points – Little Ole Mischler Financial Lights Up the Leaderboards Today – Two Deals; Two Roles
Syndicate IG Corporate-only Volume Estimates for September
NICs, Bid-to-Covers, Tenors and Sizes
New Issues Priced
Lipper Report/Fund Flows – Week ending September 7th
Investment Grade Credit Spreads (by Rating & Industry
Economic Data Releases
Rates Trading Lab
New Issue Pipeline
M&A Pipeline

This morning a couple bulge bracket firms, one in particular, had a handful of deals waiting to go but alas with futures down 100 points and European equities in the red, issuers and leads felt volatility would rule the day on the heels of Friday’s 394 drop, the market’s lowest since June 24th. Go/No Go calls favored standing down with two exceptions – two domestic utilities, Interstate Power and Light Co. and Southern Company both of which took advantage of their sector’s defensive nature to price two very strong deals in today’s IG dollar DCM. Mischler served as active Co-Manager on Interstate P&L and was an Underwriter on Southern Company’s $25 par 60NC5 Series 2016A Junior Subordinated Notes new issue due 10/01/2076.

The session finished with only those two deals priced totaling $1.2b with a promise from the guy-in-the-corner that tomorrow WILL be a VERY busy day! Still, in only the 7th business day of September including two Friday’s, one of which preceded Labor Day weekend, we’ve already issued over 46% of the syndicate midpoint average forecast for the entire month with 14 business left to go!

Below please find my synopsis of everything Syndicate and Secondary from today’s debt capital markets, including the investment grade corporate bond data drill down as seen from my seat here in Syndicate, Sales and DCM.
Ron Quigley, Managing Director, Head of Fixed Income Syndicate (more…)