Maryland's general obligation pricing, which pushed yields on the MMD scale lower earlier in the week, may bode well for the $163.6 million Louisiana Public Facilities Authority deal scheduled to enter the market on Thursday.
The revenue bond deal is short-weighted with maturities ranging from 2015 to 2027.
"Maryland was the big news of the week, which pushed yields lower to that range," an underwriter at Raymond James & Associates in New York said. "We won't know for sure where the deal's yields will end up until we price the bonds."
Raymond James anticipates strong demand for the deal.
"We have been aggressive in our marketing of the Louisiana deal," an underwriter at Raymond James in New York said. "We're anticipating a good day."
The deal received an Aa3 from Moody's Investors Service and an AA-minus from Fitch Ratings.
In the competitive market, the town of Oyster Bay, N.Y., will sell $170.5 million of GOs.
"It's a pretty large deal and it was recently downgraded by S&P with a negative outlook," a New York trader said. "The credit has taken a turn for the worse so it's going to be interesting to see how people bid on the deal and where it gets priced."
The deal is rated BBB by S&P.
Alabama will auction $200.6 million of general obligation bonds in the competitive market. The deal is rated Aa1 by Moody's and AA-plus by Fitch.
Another large deal expected to enter the negotiated market Thursday is $141.4 million of Minnesota University Regents revenue bonds. RBC Capital Markets is the lead underwriter and the deal is rated Aa1 by Moody's.
Barclay's will issue a two-part deal totaling $118.3 million of Washington Economic Development Finance Authority revenue bonds. The deal is rated Aa1 by Moody's and AA-plus by Standard and Poor's.
Citigroup Global Markets will bring $109.6 million of Central Brown County, Wisc., Water Authority revenue refunding bonds. The deal is rated A-plus by S&P and AA-minus by Fitch.
Stifel Nicolaus will issue a two-part deal totaling $115 million of Emeryville Redevelopment Agency, Calif., tax allocation refunding bonds. The deal is rated A-plus by S&P.
