The Federal Reserve announced yesterday it will set a 2.04% minimum bid on its $25 billion 84-day term auction facility credit, which sold yesterday.
Results will be announced at 10 a.m., Eastern Daylight Time, today, with Thursday as the settlement date. The loan matures Nov. 6.
The Fed set a minimum bid amount of $5 million per bid, with a maximum of $2.5 billion per institution.
This was the first auction of the longer-term TAFs, which the Fed created at the end of July.
Along with UBS' departure from the negotiated underwriting space, various firms have hired talent from both firms to increase their primary and secondary market presence. Many hope for some positive effects in both competition and secondary market liquidity as a result.
The bond plan, a key priority for Mayor Brandon Johnson, will be paid for with revenue gained by letting tax increment financing districts expire.
Moody's Ratings on Monday revised Illinois' outlook to positive from stable and affirmed the state's A3 issuer rating and the A3 rating on its GO debt.
"Bifurcated demand reflects the persistent bid strength from [separately managed accounts] and retail investors, not to mention more accounts marshaling cash and liquidity up front while the Fed perspective evolves," said MMA's Matt Fabian.
In a move that kicks the can down the road at the very least, the Commission has begun a process that often results in outright rejection.
The 2022 law, which has so far banned three major investment banks from underwriting municipal bonds in Oklahoma, could be amended to limit its reach to state agencies.
