Market participants are gearing up to throw their cash into the primary market this week as July 4th vacations and the World Cup have come to an end, putting focus back onto the market.
"I'm interested in any new issues, because that's what the game is," a New York trader said.
Though supply is expected to tick up a bit this week, investors are skeptical whether there will be enough new paper to go around.
"If the price is right and the structure is right, people will put their money into it," the New York trader said. "Supply is not big right now, so anything will do."
With turmoil in Puerto Rico still brewing, traders are leaning toward the primary.
"New issues are doing well, but the secondary is deadly," the New York trader said.
Bank of America will issue a two-part deal totaling $1.4 billion of California Bay Area Toll Authority revenue bonds. The $1.2 billion portion of the deal has a soft put. The deal is rated Aa3 by Moody's Investors Service and AA-minus by Fitch Ratings.
"The Cali deal will be gobbled up," the New York trader pedicted. "With a deal like this, I like to see where the maturities line up."
Morgan Stanley will price $675 million of New York City Transitional Finance Authority revenue bonds in the negotiated market and the issuer will also sell $125 million in the competitive market.
Bank of America will bring to market $417.3 million of California Health Facilities Financing Authority revenue bonds.
Morgan Stanley will price $250 million of Kansas Department of Transportation revenue bonds. The deal is rated Aa2 by Moody's and AA-plus by Fitch.
In the competitive market, the Colorado General Fund will auction $500 million of tax and revenue anticipation notes. The deal is rated MIG1 by Moody's and SP-1-plus by S&P.
Palms Springs Unified School District, Calif., will auction $109.4 million of general obligation bonds. The deal is rated AA-minus by S&P.
