Weekly Volume Rebounds to $9.15B

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Municipal bond volume is expected to rebound to more than $9 billion in the coming week, as issuers take advantage of post-tax season demand.

Weekly volume is estimated at $9.15 billion, according to Ipreo and The Bond Buyer, up from the $4.99 billion sold week of April 27, according to Thomson Reuters. The total coming to market is comprised of $6 billion of negotiated deals and $3.15 billion of competitive sales.

"Savvy issuers and underwriters know that significant amounts of cash hit individual portfolios on May 1," said Michael Pietronico, chief executive officer at Miller Tabak Asset Management "This creates more demand, all things equal."

The past week's drop off may be a harbinger of weeks ahead, he said, as the market responds to the likelihood that the Federal Reserve will start raising interest rates later this year

"The drop off had something to do with interest rates: they have been moving higher, which is putting refunding deals back on the shelf," Pietronico said. "As summer is approaching it might become the norm as we get close to a liftoff of rising rates."

Leading off next week's calendar is a $348 million negotiated deal from the Indiana Finance Authority. Goldman, Sachs is expected to price the stadium project and convention center expansion project bonds on Thursday. The issue is rated Aa2 by Moody's and AA-plus by Standard & Poor's and Fitch Ratings. This bond sale is associated with Lucas Oil Stadium and the Indiana Convention Center project.

Goldman is expected to price the Los Angeles Community College District's $310 million of GOs on Wednesday after a retail order period on Tuesday. The bonds are rated Aa1 by Moody's and AA-plus by S&P.

Goldman is also slated to price the Florida Mid-Bay Bridge Authority's $279 million of tax-exempt and taxable first senior lien revenue bonds and tax-exempt second senior lien revenue bonds on Tuesday. The first senior lien bonds are rated BBB-plus by Moody's and S&P and the second senior lien bonds are rated BBB by Moody's and S&P.

Bank of America Merrill Lynch is scheduled to price Lee Memorial Health System's $277.065 million of hospital revenue and refunding bonds, Series 2015A on Wednesday. The bonds are rated A2 by Moody's and A by S&P.

Loop Capital markets is expected to price New York's Triborough Bridge and Tunnel Authority's $250 million Series 2015A general revenue bonds for MTA bridges and tunnels on Thursday after a retail order period on Wednesday. The deal is expected to mature serially from 2015-2035 and have term bonds in 2040 and 2045.

The proceeds of this sale will be used for "existing, approved capital projects and $100 million of the proceeds to pay off the 2014 bond anticipation notes" according to a spokesperson for the MTA. The bonds are rated Aa3 by Moody's, AA-minus by S&P and Fitch and AA by Kroll Bond Rating Agency.

Citigroup is scheduled to price on Thursday the Atlanta Development Authority's $200 million of senior lien and second lien tax-exempt and taxable bonds for the new downtown Atlanta stadium project. The senior bonds are rated Aa3 by Moody's and A-plus by S&P while the second lien bonds are rated A1 by Moody's and A by S&P.

Turning to the competitive arena, the state of Ohio is selling three separate issues totaling $345 million on Tuesday. The issues consist of $300 million of Series 2015B common schools GOs, $35 million of Series T natural resources GOs, and $10 million of Series 2015B taxable higher education GOs. All three issues are rated Aa1 by Moody's and AA-plus by S&P and Fitch.

The state of Louisiana is scheduled to sell $334.990 million of Series 2015A and 2015B various purpose GO refunding bonds on Wednesday. The issue is rated Aa2 by Moody's and AA by S&P and Fitch.

The state of Louisiana has been facing some financial pressures and that the LSU deal that was aborted last week, was attributed to the state's woes.

Louisiana State Treasurer John Kennedy said he was told that some national investors had pulled out of a large part of the transaction because of concern over the state's support colleges and universities.

"I think with Louisiana it is a self-inflected wound, and that all Louisiana paper will suffer until there is clarification there," Pietronico said.

The Los Angeles Unified School District is slated to sell $329.565 million of Series 2015A GO refunding bonds on Wednesday.

Like Louisiana, the LAUSD are also dealing with some issues going into their pending bond sale. LAUSD officials have been upfront about their plans to use bond proceeds to buy iPad tablets for students and they have been in talks with the SEC about it.

"There is excess supply with California paper right now so with timing of the issue, it might cost some extra yield, as the California market seems extra heavy and the issuer is in a lot of portfolios," Pietronico said.

Seattle is set to offer two separate issues totaling $323.21 million on Wednesday. The sales consist of $156.875 million of Series 2015 unlimited tax GO improvement bonds and $166.335 million of Series 2015A limited tax GO improvement and refunding bonds. Both sales are rated Aa1 by Moody's, triple-A by S&P and AA-plus by Fitch.

On Tuesday, the Massachusetts School Building Authority will sell $300 million of Series 2015 senior dedicated sales tax bonds. The issue is rated Aa2 by Moody's.

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