Volatile muni yields coupled with the trepidation surrounding a Federal Open Market Committee meeting seem to have put a damper on new issuance as volume for the coming week is estimated at $6.72 billion, according to Ipreo and The Bond Buyer. This is down from a revised total of $7.36 billion that came to market in the past week, according to Thomson Reuters.
There are $5.52 billion of negotiated deals slated, up from a revised $3.16 billion; and $1.20 billion of competitive sales are scheduled, down from a revised $4.19 billion.
The FOMC, which is set to meet Tuesday and Wednesday, may send further signals of its plans to start raising interest rates.
Goldman, Sachs is expected to price the biggest deal, the New York City Transitional Finance Authority's $750 million of Series S-2 Fiscal 2015 building aid revenue bonds. The new money BARBs are slated for sale on Wednesday after a two-day retail order period beginning on Monday.
Ramirez is co-senior manager on the sale, which is expected to be rated Aa2 by Moody's Investors Service and AA by Standard & Poor's and Fitch Ratings.
JPMorgan is set to price the New York City Housing Development Corp.'s $563.85 million of multi-family housing revenue bonds for the Sustainable Neighborhood Program on Tuesday. The issue is initially structured as $496.45 million of Series 2015 D-1 fixed-rate bonds, $64.14 million of Series 2015 D-2 fixed-rate bonds and $3.26 million of Series 2014 Series I fixed-rate bonds. The issue is rated Aa2 by Moody's and AA-plus by S&P.
The NYC HDC is also coming to market with a $40 million sale of taxable multi-family housing revenue bonds on Tuesday to be priced by Citi. The Sustainable Neighborhood bonds are initially structured as serials maturing from 2016 to 2025 and terms in 2030, 2035 and 2044.
Sustainable Neighborhood bonds are a new category of social investment bonds and the first for affordable housing in the United States.
"HDC has a long history of firsts and I am proud that the Sustainable Neighborhood bonds authorized by the board will continue this tradition of innovation," said HDC President Gary Rodney. "The financing that the board approved will create and preserve safe, quality affordable housing that provides deeper levels of affordability, serves some of the most vulnerable New Yorkers, and fosters greater economic diversity and stronger neighborhoods."
In total, the HDC Board of Directors voted to authorize $842 million in Sustainable Neighborhood bonds, including the issue set to be priced in the upcoming week.
"Specifically introducing the sustainable neighborhood bonds to the market will attract investors who might not typically be interested in housing bonds, but who are otherwise making socially beneficial investments," Rodney said.
JPMorgan is also slated to price the Monroe County, N.Y., Industrial Development Corp.'s $300.62 million of bonds for the University of Rochester on Tuesday. The issue is initially structured as $182.61 million of Series 2015A tax exempt bonds, $56.59 million of Series 2015B tax-exempt bonds and $61.43 million of Series 2015C taxable bonds.
Bank of America Merrill Lynch is set to price the Florida Municipal Power Agency's $277 million of Series 2015 B&C all requirements power supply project revenue and refunding bonds on Wednesday after a one day retail order period on Tuesday. The bonds are rated A2 by Moody's and A-plus by S&P.
Citi is slated to price Louisiana's Ochsner Clinic Foundation's $252 million of taxable corporate CUSIP bonds on Thursday. The issue is initially structured as a 2045 term bond. The bonds are rated Baa1 by Moody's and BBB-plus by S&P.
Wells Fargo Securities is expected to price the Lamar Consolidated Independent School District, Texas' $211.59 million of unlimited tax schoolhouse refunding bonds on Wednesday,
The bonds are expected to mature serially from 2018 through 2048. The issue is backed by the Permanent School Fund guarantee program and rated Aa2 by Moody's and AA by S&P.
Action was quieting down in the competitive arena as well, with no bond issues over $200 million on tap.
On Thursday, the South Carolina Transportation Infrastructure Bank will offer the biggest competitive sale of the week when its $155.15 million of Series 2015A revenue refunding bonds go out for bids. The bonds are initially structured to mature serially from 2017 through 2027.
The S.C. Infrastructure Bank last sold comparable bonds competitively on Oct. 10, 2012, when Bank of America Merrill Lynch won $429.91 million of Series 2012B revenue refunding bonds with a true interest cost of 2.95%.
On Tuesday, Baltimore County, Md., will offer $97.89 million of Series 2015 Metropolitan District refunding bonds. The bonds are initially structured to mature serially from 2016 through 2026.
The county last sold comparable bonds competitively on June 25, 2012, when BAML won $74.61 million of Series 2014C Metropolitan District refunding bonds.
Also on Tuesday, Lake County, Ill., is offering $90 million of Series 2015A GOs backed by a sales tax alternative revenue source. The bonds are initially structured to mature serially from 2015 through 2025.
The county last sold comparable bonds competitively on Nov. 6, 2013, when Hutchinson Shockey won $30 million of Series 2013 GOs backed by a sales tax alternative revenue source.
In the short-term competitive sector, the N.Y. Metropolitan Transportation Authority is selling $500 million of Series 2015A transportation revenue bond anticipation notes on Thursday. The BANs are dated June 25 and due March 1, 2016. The notes are rated MIG1 by Moody's, SP1-plus by S&P and F1 by Fitch.
Houston, Texas, is selling $220 million of Series 2015 tax and revenue anticipation notes on Wednesday. The TRANS are rated SP1-plus by S&P and are dated July 2 and due on June 30, 2016.
Additionally, Wayne County, Mich., is preparing to come to market with a $187 million note sale. The county hired Orrick, Herrington & Sutcliffe LLP as special bankruptcy counsel on the deal which expected to price June 18. Bond documents and an online investor road show on the deal both feature discussions on bankruptcy in the sections about investor risks.
