Browsing articles in "News and Information"
Interstate Power and Light Company Prices Inaugural Public Offering of Green Bonds
September 2018      Recent Deals   
Mischler Financial Group Inc. Serves as Co-Manager for $500 million in green bonds issued by Alliant Energy Corp. subsiidary Interstate Power & Light

alliant-energy-green-bond-offeringMADISON, Wis., Sept. 20, 2018 /PRNewswire/ — Interstate Power and Light Company (“IPL”), a wholly owned subsidiary of Alliant Energy Corporation (NYSE :LNT ), announced the pricing of its inaugural public offering of $500 million aggregate principal amount of 4.100% senior debentures yesterday.  An amount equal to or in excess of the net proceeds from the offering will be or have been used for the construction and development of wind and solar electric generating facilities.  The senior debentures have an interest rate of 4.100% and will be due on September 26, 2028.  The closing of the offering is expected to occur on September 26, 2018, subject to customary closing conditions.

The offering was marketed through a group of underwriters consisting of Goldman Sachs & Co. LLC, MUFG, and Wells Fargo Securities as joint book-running managers, and Comerica Securities, KeyBanc Capital Markets, US Bancorp, Mischler Financial Group, Inc., and Ramirez & Co., Inc. as co-managers.

The offering is being made only by means of a prospectus supplement and accompanying prospectus which are part of a shelf registration statement IPL filed with the Securities and Exchange Commission (the “Commission”).  Copies may be obtained from Goldman Sachs & Co. LLC by calling +1 (866) 471-2526, from MUFG by calling +1 (877) 649-6848, or from Wells Fargo Securities by calling +1 (800) 645-3751.  Electronic copies of these documents will be available from the Commission’s website at www.sec.gov.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor will there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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Muni Market New Issue Calendar Week 09-04-18
September 2018      Muni Market   

New Muni Debt Offerings Scheduled for the Holiday-Shortened Week of September 04-Last week muni volume was about $4.5 billion. This holiday-shortened week volume is expected to be $3.6billion. The negotiated market is led by $900.9million future tax bonds for New York City Transitional Finance Authority, New York. The competitive market is led by $989.3 million tax-exempt and taxable general obligation bonds for the State of California on Thursday.

As always, the Mischler Muni Market Outlook provides public finance investment managers, institutional investors focused on municipal debt and muni bond market participants with a summary of the prior week’s municipal bond market activity, including credit spreads and money flows, and a look at pending municipal finance offerings tentatively scheduled for the most current week.

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 203.276.6676.

muni-market-new-issue-calendar

During first half of 2018, and full years 2017 and 2016 alone, minority broker-dealer Mischler Financial Group Inc. underwriting roles (for which MFG has led, co-managed and/or served as selling group member) have included more than $625 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 and Municipal Debt New Issuance outlooks are provided as a courtesy to institutional clients of Mischler Financial Group, Inc. (more…)

Municipal Debt New Issue Calendar-Week August 27-Salute to Senator John McCain
August 2018      Muni Market   

New Muni Debt Offerings Scheduled Week of August 27 2018 & Note of Condolence and Tribute to Senator John McCain, a true American Hero.  This week’s Mischler Muni Market Update is dedicated to and sadly prefaced by Mischler Financial Group note of condolence to the family of Senator John McCain and our tribute to a man who was not only a valiant military hero who made so many personal sacrifices throughout his military career and served with great honor, he dedicated his life to our country throughout a multi-decade leadership role within the halls of the US Senate. Senator McCain exemplified what is truly great about our country–his integrity, honesty, humility, pure sense of humanity and passionate dedication to advocating on behalf of those who could not advocate on behalf of themselves made him a role model in every sense of the phrase. Those who dare to dispute whether those captured behind military lines and then tortured while being held in captivity as a POW ‘deserve’ to be referred to as a hero know not what an American Hero is and seemingly, know even less as to the many reasons why the United States of America is and has always remained the world’s icon of freedom and democracy since our founding fathers forged our Constitution and Bill of Rights.

john-mccain-visit-nyse-trading-floor

Senator John McCain visit to NYSE days after 9/11

In an new era that has been distracted by political gamesmanship and what seems to be a frightening cultural shift that portends to threaten long embraced values, right-minded views and thoughtful approach to government leadership–and the very fabric of what we have always held dear, Senator McCain proved he really was a ‘maverick’; up until his last breathing moments he was determined to be a voice of reason and sensibility. Never one to take his oath of office for granted, McCain’s legacy for always reaching across the aisle to engage with and embrace those who may have disagreed with his views in order to forge legislation and policy for the betterment of all the people puts him on a pedestal that only a handful of American leaders throughout the country’s history can make claim to.

Many of us at Mischler Financial have served in the US Military, several of us served during the Vietnam ‘conflict’ and more than several of us were injured in the line of duty. We have the scars to prove it, should we have to. Military veterans are by and large, a unique community of people. We’re trained to defend and honor the rights of all Americans and trained to fight with honor, even to the death, in order to protect our comrades in arms and all of our countrymen and countrywomen. For many of us, that training has led to battlefield engagements and injuries sustained that we prefer not to speak of. Instead, our personal missions and our mission as members of a highly-skilled team of professionals has remained true to the oath we each took when joining the US military–to uphold the Constitution and to defend the rights and liberties of all Americans–and to preserve and protect the values that has always made America great. We’re proud to carry over those disciplines and sense of duty in the course of serving our financial and investment industry clients as well as their constituents and the communities we live in.

We’re perhaps even more proud to salute Senator John McCain, who inspired us all when saying, “Courage is not the absence of fear, but the capacity to act despite our fears.” 

Last week muni volume was about $3.7 billion.  This week volume is expected to be about $3.9 billion.  The negotiated market is led by $727.2 million general obligation bonds for The Commonwealth of Massachusetts.  The competitive market is led by $502.1 million tax-exempt and taxable general obligation and motor vehicle fuel tax bonds for the State of Washington in 3 bids on Wednesday.

As always, the Mischler Muni Market Outlook provides public finance investment managers, institutional investors focused on municipal debt and muni bond market participants with a summary of the prior week’s municipal bond market activity, including credit spreads and money flows, and a look at pending municipal finance offerings tentatively scheduled for the most current week.

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 203.276.6676.

muni-new-issue-calendar-mischler

During first half of 2018, and full years 2017 and 2016 alone, minority broker-dealer Mischler Financial Group Inc. underwriting roles (for which MFG has led, co-managed and/or served as selling group member) have included more than $625 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 and Municipal Debt New Issuance outlooks 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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Municipal Debt Market Sees Highest Volumes for Year; This Week’s Calendar
August 2018      Muni Market, Recent Deals   

Municipal Debt Market Sees Highest Volumes for Year; New Muni Debt Offerings Scheduled Week of August 13 2018-With last week’s muni debt secondary market volume setting a record for the year, new muni bond issues scheduled for issuance this week is expected to be $11.8bil, more than double the issuance of last week. As always, the Mischler Muni Market Outlook provides public finance investment managers, institutional investors focused on municipal debt and muni bond market participants with a summary of the prior week’s municipal bond market activity, including credit spreads and money flows, and a look at pending municipal finance offerings tentatively scheduled for the most current week.

The negotiated market is led by $2.3 billion Airport System Subordinate Revenue bonds for the City and County of Denver, Colorado. The competitive market does not have any financings greater than $100.0 million scheduled.

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 203.276.6676

muni-market-new-issue-calendar-mischler

During first half of 2018, and full years 2017 and 2016 alone, minority broker-dealer Mischler Financial Group Inc. underwriting roles (for which MFG has led, co-managed and/or served as selling group member) have included more than $625 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 and Municipal Debt New Issuance outlooks are provided as a courtesy to institutional clients of Mischler Financial Group, Inc.

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American Water Works Floats Debt Offering with Diversity & Inclusion Faucet
August 2018      Debt Market Commentary, Recent Deals   

Quigley’s Corner 08.06.18  American Water Works Taps Debt Market and Floats Deal with Diversity & Inclusion Faucet

Investment Grade Corporate Bonds New Issue Re-Cap

Syndicate IG Corporate-only Volume Estimates For This Week and August

American Water Deal Dashboard

American Water Works: Diversity and Inclusion Flows From the Top Down

New Issues Priced

NICs, Bid-to-Covers, Tenors, Sizes and Average Spread Compression from IPTs thru Launches

Indexes and New Issue Volume

Global Market Recap

2018 Lipper Report/Fund Flows – Week ending July 25th

IIG Credit Spreads by Rating

IG Credit Spreads by Industry

New Issue Pipeline

M&A Pipeline

Economic Data Releases

Rates Trading Lab

Tomorrow’s Calendar

QC Geopolitical Risk Monitor

Below is the opening extract from Quigley’s Corner aka “QC”  Monday, Aug 6, 2018  edition distributed via email to institutional investment managers and Fortune Treasury clients of Mischler Financial Group, the investment industry’s oldest minority broker-dealer owned and operated by Service-Disabled Veterans.

Cited by Wall Street Letter in each of 2014, 2015 and 2016 for “Best Research / Broker-Dealer”the QC is one of three distinctive market comment pieces produced by Mischler Financial Group. The QC is a daily synopsis of everything Syndicate and Secondary as seen from the perch of our primary debt capital markets desk and includes a comprehensive “deep dive” with optics on the day’s investment grade corporate debt new issuance and secondary market data encompassing among other items, comparables, investment grade credit spreads, new issue activity, secondary market most active issues, and upcoming pipeline. To receive Quigley’s Corner, please email: rquigley@mischlerfinancial.com or via phone 203.276.6646 

Today the IG dollar DCM hosted 11 issuers across 19 tranches totaling $10.95b.  The SSA space was quiet.

Here’s a look at the WTD and MTD IG Corporate new issue volume as measured against syndicate desk estimates:

 

  • The IG Corporate WTD total is 50.53% of this week’s syndicate midpoint average forecast or $10.95b vs. $21.67b.
  • MTD we’ve priced 30.86% of the syndicate forecast for July IG Corporate new issuance or $19.985b vs. $64.75b.
  • There are now 16 issuers in the IG credit pipeline.

 

Today’s IG Primary & Secondary Market Talking Points

 

  • Ventas Realty LP upsized today’s 10-year Senior Notes new issue to $750mm from $600mm at the launch and at the tightest side of guidance.
  • The average spread compression from IPTs and/or guidance thru the launch/final pricing of today’s 18 IG Corporate-only new issues was <18.53> bps.
  • Including today’s Prudential $25 par Junior Subordinated Notes transaction spread compression across the 19 IG Corporate new issues was <17.88> bps.
  • BAML’s IG Master Index tightened 1 bp to +115 vs. +116. (It’s post-Crisis low is +90 set on 2/01).
  • Bloomberg/Barclays US IG Corporate Bond Index OAS was unchanged at 1.09. (1.24 represents the high on 6/04; 0.85 is the post-Crisis low set on 1/30).
  • Standard & Poor’s Investment Grade Composite Spread tightened 1 bp to +149 vs. +150. (+125 represents its post-Crisis low set 2/02).
  • Investment grade corporate bond trading posted a final Trace count of $11.9b on Friday versus $17b on Thursday and $13.4b the previous Friday.
  • The 10-DMA stands at $17.9b.

 

Syndicate IG Corporate-only Volume Estimates For This Week and August

 

IG Corporate New Issuance This Week
8/06-8/10
vs. Current
WTD – $10.95b
August 2018 vs. Current
MTD – $19.985b
Low-End Avg. $20.10b 54.48% $63.88b 31.29%
Midpoint Avg. $21.67b 50.53% $64.75b 30.86%
High-End Avg. $23.23b 47.14% $65.62b 30.46%
The High $25b 43.80% $50b 39.97%
The Low $15b 73.00% $76b 26.30%

 

American Water Deal Dashboard

american-water-works-diversity-inclusion-debt-offering

 

Today Mischler was honored to serve as a passive Co-Manager on American Water’s $1.325b two-part 10- and 30-year Senior Notes transaction.  For relative value we had looked at the following comparables and adjusted for the low dollar price on AWK’s outstanding comps arriving at 2 bps concession per tranche.

AMERICAN WATER (A3/A)

AWK 2.95 09/27  +75   g76     $94

AWK 3.75 09/47  +107           $93

NSTAR ELECTRIC CO (A2/A+)

ES 3.20 05/27     +80   g81     $96

ES 4.40 03/44     +105           $104

 

CONSOLIDATED EDISON CO NY (A2/A-)

ED 3.80 05/28    +69   g69    $101

ED 3.875 06/47  +112           $95

 

INDIANA MICHIGAN POWER (A3/A-)

AEP 3.85 05/28    +85   g85       $100

AEP 3.75 07/47    +111              $93

 

VIRGINIA ELECTRIC & POWER CO (A2/BBB+)

D 3.80 04/28    +84    g84     $100

D 3.80 09/47    +109             $94

 

Use of proceeds from today’s transaction will be used to lend funds to American Water and its regulated operating subsidiaries; to repay $191.1mm principal amount of the issuer’s 5.62% Senior Notes due 2018 upon maturity on December 21, 2018; to redeem up to $200mm aggregate principal amount of the issuer’s outstanding long-term debt securities due in 2019 and 2022 and which have a weighted-average interest rate of 5.70%; to repay commercial paper obligations of the issuer, including commercial paper incurred to fund in part the acquisition of all of the capital stock of Pivotal Home Solutions Co., and for general corporate purposes.

Here’s a look at price evolution throughout today’s book build followed all the critically important deal information you need and want to know:

 

AWK Issue RATING IPTs GUIDANCE LAUNCH PRICED Spread
Compression
NIC
(bps)
Trading at
the Break
+/-
(bps)
10yr A3/A +95-100/+97.5a +85a (+/-3) +82 +82 <15.50> bps 2 81/78 <1>
30yr A3/A +125-130/+127.5a +115a (+/-3) +112 +112 <15.50> bps 2 111/108 <1>

 

American Water’s two-part cumulative order book total finished at $3.80b making the $1.325b transaction 2.87-times oversubscribed.

Here’s a look at the book build at the top and where they finished following launching both tranches at the tightest side of respective guidance.

 

AWK Issue Tranche Size Book
at-the-Top
Final Book
Size
Bid-to-Cover
Rate
10yr $625mm $1.8b $1.8b 2.88x
30yr $700mm $2.3b $2.0b 2.86x

 

That’s a very successful outcome!

Final Pricing – American Water

AWK $625mm 3.75% due 9/01/2028 @$99.981 to yield 3.752% or T+82  MWC +15

AWK $700mm 4.20% due 9/01/2048 @$99.946 to yield 4.203% or T+112  MWC +20

 

American Water Works : Diversity and Inclusion

With a history dating back to 1886, American Water Works Company Inc. (NYSE: AWK) is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 6,900 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to an estimated 15 million people in 46 states and Ontario, Canada. American Water provides safe, clean, affordable and reliable water services to its customers to make sure they keep their lives flowing.

American Water’s workforce reflects the diversity of customers it serves nationwide.  Diversity of ideas, thoughts and experiences is vital to American Water’s culture and the way it does business. Creating an environment where differences are embraced and where every employee feels engaged and included makes everyone safer, stronger and more successful.

American Water encourages, honors and celebrates differences in its employees, including race, gender, spiritual practice, ethnicity, age, nationality, military/veteran status, sexual orientation, physical capabilities, education and personal style to name just a few. Diverse employees make it more successful in serving its very diverse customers across the country; a philosophy and cultural foundation that has been long embraced and advanced by Mischler Financial et al!

American Water wants to foster an environment where its people can work safely, generate great ideas, provide the best customer service, and make a difference in the communities it serves. By cultivating a diverse and inclusive work environment guided by its core values, American Water enables any one person or group to develop the next big idea, delight their customers, grow the company and create a future of success.

There are a host of certifications that fall under the category of diversity aka minority broker-dealers.  This once “cottage industry” among our financial services experienced growing pains over the last three decades as each company attempted to become more of a full service BD.  Each were challenged by capital consistency, value-added distribution propositions, meaningful capital markets coverage, etc. I am, however, happy to say that a group has emerged from those that have raised the bar so to speak in terms of execution and capabilities.  Today, the guy-in-the-corner affirms and commends American Water for inviting a total of 10, yes that’s right T-E-N diversity firms that served as passive Co-Managers on today’s $1.325b two-part transaction.  It’s a privilege and honor to serve American Water and to be recognized among our brethren in the space.

Mischler sends its five-star salute to American Water’s Treasury/Funding Team today’s honored position to serve on your transaction.  Shout outs, however, aren’t only reserved for the Treasury/Funding teams who embrace and apply their internal corporate D&I mandates by including minority-certified broker dealers on their transactions. Please allow me to now send some shout-outs to those nine additional diversity firms who were featured alongside Mischler Financial Group, Inc., our nation’s oldest Service Disabled Veteran owned & operated broker dealer.  Along with Mischler role, it’s reflective of some of the firms getting it right in the space, in their own unique and different way.

In alphabetical order they are:

Blaylock Van, LLC, C.L. King & Associates, Loop Capital Markets,MFR Securities, Inc.,Multi-Bank Securities, Inc.,Ramirez & Co., Inc., Siebert Cisneros Shank & Co., L.L.C., Telsey Advisory Group, The Williams Capital Group, L.P.

NICs, Bid-to-Covers, Tenors, Sizes and Average Spread Compression from IPTs thru Launches

 

Issuer Ratings Coupon Maturity Size IPTs GUIDANCE LAUNCH PRICED LEADS
American Water Capital Corp. A3/A 3.75% 9/01/2028 625 +95-100/+97.5a +85a (+/-3) +82 +82 MIZ/MUFG/RBC/TD (a)
BAML/PNC (p)
American Water Capital Corp. A3/A 4.20% 9/01/2048 700 +125-130/+127.5a +115a (+/-3) +112 +112 MIZ/MUFG/RBC/TD (a)
BAML/PNC (p)
Associated Bank NA Baa1/BBB- 3.50% 8/13/2021 300 +100a +90a (+/-2.5) +87.5 +87.5 CITI/RBC
Bank of New York Mellon A/AA- 3.45% 8/11/2023 750 +80a +68a (+/-3) +65 +65 BAML/BNY/BARC/HSBC/WFS
Bank of New York Mellon
(tap) New Total $900mm
A/AA- 3.85% 4/28/2028 400 +90a +78a (+/-3) +75 +75 BAML/BNY/BARC/HSBC/WFS
Discover Bank BBB-/BBB 4.682% 8/09/2028 500 +210a +190a (+/-2.5) +187.5 +187.5 BARC/CITI/RBC
Duke Energy Progress LLC Aa3/A 3.375% 9/01/2023 300 +75a +60a (+/-3) +57 +57 JPM/MIZ/SCOT/STRH
Duke Energy Progress LLC Aa3/A 3.70% 9/01/2028 500 +95a +80a (+/-3) +77 +77 JPM/MIZ/SCOT/STRH
Ford Motor Credit Co. LLC Baa2/BBB FRN 10/12/2021 500 3mL+equiv 3mL+equiv 3mL+88 3mL+88 CS/CACIB/GS/HSBC (a) + 3 (p)
Ford Motor Credit Co. LLC Baa2/BBB 3.813% 10/12/2021 1,150 +130a +110a (+/-2) +108 +108 CS/CACIB/GS/HSBC (a) + 3 (p)
Ford Motor Credit Co. LLC Baa2/BBB 4.687% 6/09/2025 600 +200a +185a (+/-5) +180 +180 CS/CACIB/GS/HSBC (a) + 3 (p)
Indiana Michigan Power Co. A2/A- 4.25% 8/15/2048 475 +135a +125a (+/-5) +120 +120 BNY/CACIB/CS/PNC
Intercontinental Exchange A2/A 3.45% 9/21/2023 400 +85a +70a (+/-5) +65 +65 BAML/MUFG/WFS
Intercontinental Exchange A2/A 3.75% 9/21/2028 600 +115a +95a (+/-5) +90 +90 BAML/MUFG/WFS
Intercontinental Exchange A2/A 4.25% 9/21/2048 1,250 +145a +125a (+/-5) +120 +120 BAML/MUFG/WFS
PACCAR Financial Corp. A1/A+ 3.15% 8/09/2021 350 +60a +45a (+/-2) +43 +43 CITI/LLOYD/RBC/USB
PACCAR Financial Corp. A1/A+ 3.40% 8/09/2023 300 +75a +62a (+/-2) +60 +60 CITI/LLOYD/RBC/USB
Prudential Financial, Inc. Baa2/BBB+ 5.625% 40NC5
8/15/2058
500 5.625-5.75%
5.6875%a
5.625 the # 5.625% $25 par
Jr. Subs.
BAML/MS/UBS/WFS
Ventas Realty Baa1/BBB+ 4.40% 1/15/2029 750 +165-170/+167.5a +150a (+/-3) +147 +147 MIZ/MS/TD/WFS

…..and here’s another look at last week’s day-by-day re-cap of key primary market driver averages for IG Corporates only followed by the prior six week’s averages:

KEY IG CORPORATE
NEW ISSUE DRIVERS
MON.
7/30
TUES.
7/31
WED.
8/01
TH.
8/02
FRI.
8/03
AVERAGES
WEEK 7/30
AVERAGES
WEEK 7/23
AVERAGES
WEEK 7/16
AVERAGES
WEEK 7/09
AVERAGES
WEEK 7/02
AVERAGES
WEEK 6/25
New Issue Concessions <4.63> bps 2.00 bps 0.00 bps/flat 4.67 bps N/A <1.06> bps 1.50 bps 3.90 bps 3.45 bps No Issuance 9.87 bps
Oversubscription Rates 6.02x 1.91x 3.18x 3.55x N/A 4.29x 3.40x 2.33x 2.31x No Issuance 2.03x
Tenors 24.63 yrs 6.67 yrs 3.00 yrs 7.13 yrs N/A 13.33 yrs 9.00 yrs 7.73 yrs 9.24 yrs No Issuance 8.99 yrs
Tranche Sizes $369mm $950mm $450mm $1,017mm N/A $706mm $601mm $1,031mm $693mm No Issuance $504mm
Avg. Spd. Compression
IPTs to Launch
<21.25> bps <18.33> bps <12.50> bps <15.72> bps N/A <17.89> bps <16.89> bps <13.79> bps <13.39> bps No Issuance <6.58> bps

 

New Issues Priced

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New Municipal Debt Offerings Week of Aug 6 2018
August 2018      Muni Market   

New Municipal Debt Offerings Scheduled Week of Aug 6, 2018…Mischler Muni Market Update looks back to last week’s muni bond issuance, municipal bond fund flow metrics and a focused lens on the muni bond new offerings for this week.  As always, the Mischler Muni Market Outlook provides public finance investment managers, institutional investors focused on municipal debt and muni bond market participants with a summary of the prior week’s municipal bond market activity, including credit spreads and money flows, and a look at pending municipal finance offerings tentatively scheduled for the most current week.

Last week muni volume was about $4.1 billion. This week volume is expected to be $7.5 billion. The negotiated market is led by $1.2 billion for Wisconsin Health and Educational Facilities Authority. The competitive market is led by $619.4 million general obligation bonds for the State of Minnesota 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 203.276.6676

municipal-debt-new-issue-calendar-aug-6-2018

During first half of 2018, and full years 2017 and 2016 alone, minority broker-dealer Mischler Financial Group Inc. underwriting roles (for which MFG has led, co-managed and/or served as selling group member) have included more than $625 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 and Municipal Debt New Issuance outlooks are provided as a courtesy to institutional clients of Mischler Financial Group, Inc.

(more…)

Muni Yields; Scheduled Municipal Debt Offerings Week of July 30
July 2018      Muni Market   

Municipal Debt Deals-New Issue Calendar Week of July 30:  Muni Yields Tick Up…Mischler Muni Market Update looks back to last week’s muni bond issuance, municipal bond fund flow metrics and a focused lens on the muni bond new offerings for this week.  As always, the Mischler Muni Market Outlook provides public finance investment managers, institutional investors focused on municipal debt and muni bond market participants with a summary of the prior week’s municipal bond market activity, including credit spreads and money flows, and a look at pending municipal finance offerings tentatively scheduled for the most current week.

Last week muni volume was about $6.6 billion. This week volume is expected to be $4.4 billion. The negotiated market is led by $974.0 million Lodging Tax Revenue Bonds for Washington State Convention Center Public Facilities District. The competitive market is led by $510.0 million general obligation bonds for the State of Maryland on Wednesday

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 203.276.6676

muni-market-new-issue-calendar-mischler

During first half of 2018, and full years 2017 and 2016 alone, minority broker-dealer Mischler Financial Group Inc. underwriting roles (for which MFG has led, co-managed and/or served as selling group member) have included more than $625 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 and Municipal Debt New Issuance outlooks are provided as a courtesy to institutional clients of Mischler Financial Group, Inc.

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EU & US Closer to Resolving Trade Tariff Tit-for-Tat; Debt Capital Markets Comment
July 2018      Debt Market Commentary, Recent Deals   

Quigley’s Corner 07.25.18 – EU & US Closer to Resolving Trade Tariff Tit-for-Tat

Investment Grade New Issue Re-Cap – Breaking News: Trump & Juncker Stymie Trade War Rhetoric

Today’s IG Primary & Secondary Market Talking Points – Mischler in the Selling Group for AT&T’s $25 par Global Notes Transaction

Syndicate IG Corporate-only Volume Estimates For This Week and July

NICs, Bid-to-Covers, Tenors, Sizes and Average Spread Compression from IPTs thru Launches

New Issues Priced

Indexes and New Issue Volume              

Global Market Recap

Lipper Report/Fund Flows-Week of July 18

IG Credit Spreads by Rating

IG Credit Spreads by Industry

New Issue Pipeline

M&A Pipeline Highlights – $463.96 Billion in Cumulative Enterprise Value

Economic Data Releases

Rates Trading Lab

UST Resistance/Support Table

Tomorrow’s Calendar

The “QC” Geopolitical Risk Monitor

Below is the opening extract from Quigley’s Corner aka “QC”  Wednesday,  July 25, 2018  edition distributed via email to institutional investment managers and Fortune Treasury clients of Mischler Financial Group, the investment industry’s oldest minority broker-dealer owned and operated by Service-Disabled Veterans.

Cited by Wall Street Letter in each of 2014, 2015 and 2016 for “Best Research / Broker-Dealer”, the QC is one of three distinctive market comment pieces produced by Mischler Financial Group. The QC is a daily synopsis of everything Syndicate and Secondary as seen from the perch of our primary debt capital markets desk and includes a comprehensive “deep dive” with optics on the day’s investment grade corporate debt new issuance and secondary market data encompassing among other items, comparables, investment grade credit spreads, new issue activity, secondary market most active issues, and upcoming pipeline. 

To receive Quigley’s Corner, please email: rquigley@mischlerfinancial.com or via phone 203.276.6646 

 

Breaking News: Trump & Juncker Stymie Trade War Rhetoric

us-eu trade trade tariff dispute resolution

Amidst global trade tariff fears, U.S. President Trump met with European Commission President Jean-Claude Juncker in Washington to deliver what will hopefully lead to a resolution to the simmering ‘trade tarrif war’ between the US and the EU. Trump said today’s meeting at the White House “marks a new phase of close friendship and close trade relations, global security and jointly fighting against global terrorism.” President Trump further stated, “The U.S. and EU represent $838bn in trade and 50%+ of global trade. The U.S. and EU enjoy a $1 trillion bilateral trade relationship which is the largest in the world.” Trump and Juncker purportedly agreed to work toward “zero” trade tariff schemes, “zero” non-tariff barriers, and “zero” subsidies on non-auto goods. To reduce barriers in trade, soybeans foremost among them, it was reported the EU will start “almost immediately” to buy “vast amounts” of soybeans, helping US Midwest farmers and “resulting in greater prosperity for both the U.S. and EU, while making trade more fair and reciprocal.” The EU’s Juncker purportedly agreed to import “much more” liquefied natural gas and the U.S. agreed to make it easier for the EU to do so. Both leaders are said to have agreed to launch a dialogue to trade barriers, bureaucratic obstacles and to slash costs. There remain negotiations going forward, specifically on auto tariffs- but they both are said to have agreed to work toward a rapid resolution.

Today the IG dollar DCM hosted 6 issuers across 7 tranches totaling $5.15b.  The SSA space was quiet.

Here’s a look at the WTD and MTD IG Corporate new issue volume as measured against syndicate desk estimates:

  • The IG Corporate WTD total is 59.73% of this week’s syndicate midpoint average forecast or $12.125b vs. $20.30b.
  • MTD we’ve priced 71.05% of the syndicate forecast for July IG Corporate new issuance or $57.936b vs. $81.54b.
  • There are now 15 issuers in the IG credit pipeline.                                 

Today’s IG Primary & Secondary Market Talking Points – Mischler in the Selling Group for AT&T’s $25 par Global Notes Transaction

 

  • Mischler Financial was honored to be a member of the Selling Group on today’s AT&T $25 par Global Notes transaction due 8/01/2067 (callable 8/01/2023). The deal from NYSE:ATT was upsized to $750mm from $250mm.
  • A notable rarity: Today’s Burlington Northern Santa Fe LLC 30-year Senior notes new issue was launched at T+112.5 which was 2.5bps tighter than the tightest side of +120 “area” (+/-5) Guidance.
  • The average spread compression from IPTs and/or guidance thru the launch/final pricing of today’s 7 IG Corporate and Preferredonly new issues was <20.68> bps.
  • Not counting the Preferred and only counting the 6 IG Corporates, IPTs to the launch was <23.08>.
  • BAML’s IG Master Index tightened 1 bp to +120 vs. +121. (It’s post-Crisis low is +90 set on 2/01).
  • Bloomberg/Barclays US IG Corporate Bond Index OAS tightened 2 bps to 1.13 vs. 1.15. (1.24 represents the high on 6/04; 0.85 is its post-Crisis low set on 1/30).
  • Standard & Poor’s Investment Grade Composite Spread was unchanged at +153. (+125 represents its post-Crisis low set 2/02).
  • Investment grade corporate bond trading posted a final Trace count of $21.4b on Tuesday versus $15.4b on Wednesday and $18.3b the previous Tuesday.
  • The 10-DMA stands at $16.9b.

 

Syndicate IG Corporate-only Volume Estimates For This Week and July

 

IG Corporate New Issuance This Week
7/23-7/27
vs. Current
WTD – $12.125b
July 2018 vs. Current
MTD – $57.936b
Low-End Avg. $18.60b 65.19% $81.04b 71.49%
Midpoint Avg. $20.30b 59.73% $81.54b 71.05%
High-End Avg. $22.00b 55.11% $82.04b 70.62%
The High $10b 121.25% $60b 96.56%
The Low $30b 40.42% $100b 57.94%

 

Below please find a synopsis of everything Syndicate & Secondary as seen from the perch of Mischler Financial Group’s Investment Grade Capital Markets Desk.

 

Have a great evening!
Ron Quigley, Managing Director, Head of Fixed Income Syndicate

 

NICs, Bid-to-Covers, Tenors, Sizes and Average Spread Compression from IPTs thru Launches

 

Here’s a review of this week’s five key primary market driver averages for IG Corporates only through Tuesday’s session followed by the averages over the prior six weeks:

KEY IG CORPORATE
NEW ISSUE DRIVERS
MON.
7/23
TUES.
7/24
AVERAGES
WEEK 7/16
AVERAGES
WEEK 7/09
AVERAGES
WEEK 7/02
AVERAGES
WEEK 6/25
AVERAGES
WEEK 6/18
AVERAGES
WEEK 6/11
New Issue Concessions 2.64 bps 1.50 bps 3.90 bps 3.45 bps No Issuance 9.87 bps +7.50 bps +4.02 bps
Oversubscription Rates 3.32x 2.47x 2.33x 2.31x No Issuance 2.03x 2.59x 2.89x
Tenors 7.56 yrs 5.52 yrs 7.73 yrs 9.24 yrs No Issuance 8.99 yrs 11.08 yrs 11.10 yrs
Tranche Sizes $592mm $413mm $1,031mm $693mm No Issuance $504mm $1,134mm $724mm
Avg. Spd. Compression
IPTs to Launch
<15.39> bps <13.00> bps <13.79> bps <13.39> bps No Issuance <6.58> bps <13.11> bps <13.76> bps

 

New Issues Priced

Today’s recap of visitors to our IG dollar Corporate and SSA DCM:

For ratings I use the better two of Moody’s, S&P or Fitch.

 

IG

Issuer Ratings Coupon Maturity Size IPTs GUIDANCE LAUNCH PRICED LEADS
AT&T Inc. Baa2/BBB 5.625% 8/01/2067 750 5.625%-5.75%
5.6875%a
5.625%  the # 5.625% $25 Pfd
Global Notes
BAML/MS/WFSJPM/RBC/UBS
Aviation Capital Group LLC A-/BBB+ FRN 7/30/2021 300 3mL+95-100
3mL+97.5a
+70a (+/-3) 3mL+67 3mL+67 BARC/BNPP/GS/JPM/MIZ
Aviation Capital Group LLC A-/BBB+ 4.125% 8/01/2025 500 +170a +150a (+/-5) +145 +145 BARC/BNPP/GS/JPM/MIZ
Burlington Northern
Santa Fe
A3/A+ 4.15% 12/15/2048 750 +135a +120a (+/-5) +112.5 +112.5 JPM/MS/WFS (a)
BAML/CITI/GS (p)
Nationwide Building Society Baa1/A 4.363% 6NC5 F-t-F
8/01/2024
1,000 +170a +160a (+/-5) +155 +155
Back-end:
3mL+139.2
BAML/BARC/CITI/JPM/
POSCO Baa1/BBB+ 4.00% 8/01/2023 500 +155a +130-135/+132.5a +130 +130 BAML/BNPP/HSBC/STAN
Temasek Financial (I) Ltd. Aaa/AAA 3.625% 8/01/2028 1,350 REV IPTs: +80a
+90-95/+92.5a
+75a (+/-3) +72 +72 BAML/CITI/HSBC/MS

               

Indexes and New Issue Volume              

Countable IG volume includes maturities of 18-months and out and IG-rated Preferreds.

*Denotes new high or low.

                                                                                             

Index Open Current Change
IG30 60.928 59.219 <1.709>
VIX 12.41 12.29 <0.12>
CT10 2.949% 2.975% 0.026
S&P 2,820 2,846 26  
DOW 25,241 25,414 173
Nasdaq 7,841 7,932 91
OIL 68.52 69.26 0.74  
GOLD 1,224.52 1,231.63 7.11  
 

USD

 

IG Corporates

 

USD

 

Total (IG + SSA)

DAY: $5.15 bn DAY: $5.15 bn
WTD: $12.125 bn WTD: $14.125 bn
MTD: $57.936 bn MTD: $73.436 bn
YTD: $759.129 bn YTD: $939.744 bn

 

Global Market Recap

 

  • USTs: Sold off late on news of U.S.-EU trade agreement.
  • Overseas 10-year: Bought globally ex Switz., NZ and Sweden.
  • SOFR: +0.03 to 1.90 vs. 1.87.
  • 3mth Libor: -0.001 to 2.334 vs. 2.335.
  • Overseas Stocks: U.S., Nikkei and HS rally; Core EU and U.K. sold off.
  • Currencies: DXY Index -0.416 to 94.197 vs. 94.613.
  • CDX HY: -5.847 to 329.940 vs. 335.787.
  • CDX EM: -8.068 to 165.647 vs. 173.715.

*Index levels are as of 5:00PM ET today.

2018 Lipper Report/Fund Flows – Week ending July 11th        

     

  • For the week ended July 11th, Lipper U.S. Fund Flows reported a net inflow of $2.021b into Corporate Investment Grade Funds (2018 YTD net inflow of $52.143b) and a net inflow of $260.016 into High Yield Funds (2018 YTD net outflow of $18.217b).
  • Over the same period, Lipper reported a net inflow of $358.528m into Loan Participation Funds (2018 YTD net inflow of $8.847b).
  • Emerging Market debt funds reported a net inflow of $320.443m (2018 YTD inflow of $1,142b).

 

IG Credit Spreads by Rating

The 10-day IG spread performance vs. the T10 across the ratings spectrum and how IG compared versus high yield:

Spreads across the four IG asset classes are 22.75 bps wider versus their new post-Crisis lows.

 

ASSET CLASS 7/24 7/23 7/20 7/19 7/18 7/17 7/16 7/13 7/12 7/11 1-Day Change 10-Day Trend PC
low
IG Avg. 120 121 122 123 123 123 123 124 125 125 <1> <5> 90 (2/01/18)
“AAA” 59 61 62 62 62 62 62 63 63 64 <2> <5> 48 (2/02/18)
“AA” 71 72 73 73 73 74 74 74 75 75 <1> <4> 51 (2/02/18)
“A” 96 98 98 99 99 99 99 100 100 101 <2> <5> 71 (2/01/18)
“BBB” 150 152 153 154 154 154 154 156 156 157 <2> <7> 115 (2/02/18)
IG vs. HY 227 229 233 236 233 235 236 238 236 241 <2> <14> 222 (5/15/18)

 

IG Credit Spreads by Industry

…….and a snapshot of the major investment grade sector credit spreads for the past ten sessions:

Spreads across the major industry sectors are an average 29.84 bps wider versus their post-Crisis lows.

INDUSTRY 7/24 7/23 7/20 7/19 7/18 7/17 7/16 7/13 7/12 7/11 1-Day Change 10-Day Trend PC
low
Automotive 108 109 109 110 110 111 111 112 112 114 <1> <6> 67
Banking 108 109 110 111 111 111 111 112 112 113 <1> <5> 75 (2/02/18)
Basic Industry 149 150 152 153 152 153 153 155 155 156 <1> <7> 110 (2/02/2018)
Cap Goods 97 99 100 100 101 101 101 101 101 102 <2> <5> 75 (1/12/18)
Cons. Prod. 107 110 110 111 111 111 111 112 113 114 <3> <7> 78 (2/01/18)
Energy 150 151 153 155 154 155 155 156 157 158 <1> <8> 115 (2/02/18)
Financials 126 127 128 129 129 130 130 131 132 132 <1> <6> 97
Healthcare 104 105 106 106 106 106 107 107 108 109 <1> <5> 77 (2/02/2018)
Industrials 122 124 125 126 125 126 126 127 127 128 <2> <6> 93 (2/02/18)
Insurance 133 134 135 136 136 136 136 137 137 138 <1> <5> 100 (2/02/18)
Leisure 115 116 116 117 117 117 118 118 119 119 <1> <4> 98 (2/01/18)
Media 155 158 159 159 159 159 159 161 162 163 <3> <8> 113
Real Estate 127 129 129 130 130 130 131 131 132 132 <2> <5> 100 (2/01/18)
Retail 108 110 111 111 111 112 111 112 112 114 <2> <6> 82 (2/02/18)
Services 113 114 114 115 115 116 115 116 116 117 <1> <4> 94  (1/31/18)
Technology 89 91 91 92 91 92 92 93 94 94 <2> <5> 71 (2/02/18)
Telecom 160 163 165 165 165 165 164 165 166 167 <3> <7> 122
Transportation 125 127 128 129 129 129 129 130 131 131 <2> <6> 91 (2/02/2018)
Utility 125 126 127 128 128 128 128 130 130 131 <1> <6> 96 (2/02/2018)

                             

New Issue Pipeline

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Corporate Bond Issuers Return to IG Dollar Market; Toyota Drives DCM
July 2018      Debt Market Commentary   

Quigley’s Corner 07.10.18 – Corporate Bond Issuers Return to IG Dollar Market; Toyota Drives DCM

 

Investment Grade Corporate Bond New Issue Re-Cap

Today’s IG Primary & Secondary Market Talking Points

Syndicate IG Corporate-only Volume Estimates For This Week and July

NICs, Bid-to-Covers, Tenors, Sizes and Average Spread Compression from IPTs thru Launches

New IG Corporate Bond Issues Priced

Indexes and New Issue Volume              

Global Market Recap

2018 Lipper Report/Fund Flows – Week ending July 4th

IG Credit Spreads by Rating

IG Credit Spreads by Industry

New Issue Pipeline

M&A Pipeline Highlights

Economic Data Releases

Rates Trading Lab

Tomorrow’s Calendar

 

Below is the opening extract from Quigley’s Corner aka “QC”  Tuesday,  July 10, 2018  edition distributed via email to institutional investment managers and Fortune Treasury clients of Mischler Financial Group, the investment industry’s oldest minority broker-dealer owned and operated by Service-Disabled Veterans.

Cited by Wall Street Letter in each of 2014, 2015 and 2016 for “Best Research / Broker-Dealer”, the QC is one of three distinctive market comment pieces produced by Mischler Financial Group. The QC is a daily synopsis of everything Syndicate and Secondary as seen from the perch of our primary debt capital markets desk and includes a comprehensive “deep dive” with optics on the day’s investment grade corporate debt new issuance and secondary market data encompassing among other items, comparables, investment grade credit spreads, new issue activity, secondary market most active issues, and upcoming pipeline. 

To receive Quigley’s Corner, please email: rquigley@mischlerfinancial.com or via phone 203.276.6646 

Investment Grade New Issue Re-Cap

Today the IG dollar Corporate primary market finally awoke. It awoke not from a slumber but rather from a historic streak of sluggishness when considering 10 of the last 12 sessions produced an anemic $3.527b in total volume floated by US corporate bond issuers.  Today’s IG dollar DCM hosted 4 issuers across 7 tranches totalling $5.075b.  The SSA space added 2 issuers and 4 tranches for $7.50b bringing the all-in IG day totals to 6 issuers, 11 tranches and $12.575b. The all-in IG dollar pipeline saw three issuers clear trades today  – Toyota Motor Corp., EIB and JBIC while adding Nonghyup Bank to the forward schedule.  As a generalization, today’s prints were flat to tighter at the break conveying stability and attractive as opposed to aggressive pricing tactics and in line with IG credit spreads coming in the last couple of sessions – a sign of reassurance. We all know too well that the past two weeks’ issuance silence has been deafening as big FIGs lurk on the horizon to provide feed into voracious investor appetite for a new high-quality credit product.

 

Here’s a look at the WTD and MTD IG Corporate Bond Issuers’ new issue volume as measured against syndicate desk estimates:

 

  • The IG Corporate WTD total is 28.07% of this week’s syndicate midpoint average forecast or $5.075b vs. $18.08b.
  • MTD we’ve priced 6.22% of the syndicate forecast for June IG Corporate new issuance or $5.075b vs. $81.54b.
  • There are now 20 issuers in the IG credit pipeline.

                                  

Today’s IG Primary & Secondary Market Talking Points

 

  • PacifiCorp upsized today’s 30.5-year FMB new issue to $600mm from $500mm at the launch after having skipped guidance.
  • The average spread compression from IPTs and/or guidance thru the launch/final pricing of today’s 7 IG Corporate-only new issues was <11.94> bps.
  • BAML’s IG Master Index tightened 1 bp to +127 vs. +128. (It’s post-Crisis low is +90 set on 2/01).
  • Bloomberg/Barclays US IG Corporate Bond Index OAS tightened 2 bps to +120 vs. 1.22. (1.24 represents the high on 6/04; 0.85 is its post-Crisis low set on 1/30).
  • Standard & Poor’s Investment Grade Composite Spread tightened 3 bps to +159 vs. +162. (+125 represents its post-Crisis low set 2/02).
  • Investment grade corporate bond trading posted a final Trace count of $18.8b on Monday versus $7.6b on Friday and $11.6b the previous Monday.
  • The 10-DMA stands at $15.6b.

 

Syndicate IG Corporate-only Volume Estimates For This Week and July

 

IG Corporate New Issuance This Week
7/09-7/13
vs. Current
WTD – $5.075b
July 2018 vs. Current
MTD – $5.075b
Low-End Avg. $16.84b 30.14% $81.04b 6.26%
Midpoint Avg. $18.08b 28.07% $81.54b 6.22%
High-End Avg. $19.32b 26.27% $82.04b 6.16%
The High $10b 50.75% $60b 8.46%
The Low $30b 16.92% $100b 5.075%

 

 

NICs, Bid-to-Covers, Tenors, Sizes and Average Spread Compression from IPTs thru Launches

 

Here’s a review of this week’s five key primary market driver averages for IG Corporates only through Monday’s session followed by the averages over the prior six weeks:

KEY IG CORPORATE
NEW ISSUE DRIVERS
MON.
7/09
AVERAGES
WEEK 7/02
AVERAGES
WEEK 6/25
AVERAGES
WEEK 6/18
AVERAGES
WEEK 6/11
AVERAGES
WEEK 6/04
AVERAGES
WEEK 5/28
New Issue Concessions N/A No Issuance 9.87 bps +7.50 bps +4.02 bps +6.31 bps +9.00 bps
Oversubscription Rates N/A No Issuance 2.03x 2.59x 2.89x 2.70x 2.73x
Tenors N/A No Issuance 12.58 yrs 11.08 yrs 11.10 yrs 9.25 yrs 9.69 yrs
Tranche Sizes N/A No Issuance $504mm $1,134mm $724mm $623mm $467mm
Avg. Spd. Compression
IPTs to Launch
N/A No Issuance <6.58> bps <13.11> bps <13.76> bps <13.80> bps <8.23> bps

 

New Issues Priced

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Holiday Time is Over for Muni Bond Issuance-NYS Dormitory is Open
July 2018      Muni Market   

Municipal Debt Deals-New Issue Calendar Week of July 9:  NYS Dormitory Authority Sales Tax Bonds…Mischler Muni Market Update looks back to last week’s muni bond issuance, municipal bond fund flow metrics and a focused lens on the muni bond new offerings for this week.  As always, the Mischler Muni Market Outlook provides public finance investment managers, institutional investors focused on municipal debt and muni bond market participants with a summary of the prior week’s municipal bond market activity, including credit spreads and money flows, and a look at pending municipal finance offerings tentatively scheduled for the most current week.

In advance of the update, a special shout-out to WSJ’s Heather Gillers for her July 9 article: “Municipal Bonds Are Scarce. That’s Good News for Borrowers.” 

Last week muni volume was about $0.2 billion. This week volume is expected to be $8.4 billion. The negotiated market is led by $668.7 million tax-exempt and taxable bonds for Trustees of the California State University. The competitive market is led by $1.8 billion tax exempt and taxable state sales tax bonds for Dormitory Authority of the State of New York on Wednesday.

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 203.276.6676

mischler-muni-market-update-070918During first half of 2018, and full years 2017 and 2016 alone, minority broker-dealer Mischler Financial Group Inc. underwriting roles (for which MFG has led, co-managed and/or served as selling group member) have included more than $625 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 and Municipal Debt New Issuance outlooks are provided as a courtesy to institutional clients of Mischler Financial Group, Inc.

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