Market participants predict modest attention for the infrequent issuers slated to enter the municipal market on Wednesday as activity for the week continues at a slow pace.
"It's a sleepy market," a New York trader said. "There's not a lot of general activity. There's plenty of money around, but at these rates people aren't interested in investing. Everyone seems to be waiting for rates to go higher."
The Kansas Department of Transportation is expected to price $212.9 million of highway revenue refunding index bonds on Wednesday with Barclays leading the deal.
Traders agreed the high-grade deal will be well received despite Kansas' recent income tax reduction, stating the market "can use paper in that region for sure."
"The transportation department usually trades decently and Barclays pays up for their deals," a second New York trader said. "It will do well. I'm sure they can bang it out."
Raymond James & Associates will issue $176.3 million of Miami Beach Health Facilities Authority revenue refunding bonds on Wednesday.
"It has a triple-B rating," the second New York trader said. "I expect there to be some sort of insurance on it. They're going to have to look for higher yield especially when you have Detroit and Puerto Rico defaulting."
The bonds mature from 2015 to 2044. The deal is rated Baa1 by Moody's and BBB by Fitch.
Stephens will price $118.9 million of Bossier City, La., utilities revenue refunding bonds. The deal is rated A1 by Moody's and AA-minus by S&P.
There are no large competitive deals scheduled for Wednesday.
