Markets News from Bond Buyer

The muni market is dealing with elevated supply this week and secondary flows have "reacted in tandem," said Kim Olsan, senior fixed income portfolio manager at NewSquare Capital.

Fortress Investment Group bought the property in 2021 after it was largely destroyed by Hurricanes Irma and Maria and financed a major renovation that featured reinforcement standards designed to protect against a category 5 hurricane.

This movement comes on the heels of muni yields remaining relatively unchanged throughout November.

The muni market recorded its fourth straight month of positive returns in November and December is likely to keep the streak going with another strong month to round out the year.

November volume was $38.487 billion, up 51.1% from $25.47 billion in 2024. This is above November's 10-year average of $33.743 billion.

King County, Washington plans a $422.2 million competitive sale of limited tax general obligation bonds for Wednesday.

The new debt is a "bridge loan" until the company can raise fresh financing, a bondholder said.

Preliminary November issuance figures are at $37.054 billion, up 45.5% year-over-year, according to LSEG.

"Dealer inventories have grown heavier throughout [November], which could put pressure on the market if supply reverts to its weekly average of over $10 billion," said Chris Brigati, CIO and managing director of SWBC, and Ryan Riffe, SVP of capital markets at the firm.

Oakland touts financial turnaround with a $335 million bond sale ahead, despite negative credit outlooks.

"We do not expect any major weakness to take hold as the new issue calendar is beginning to dwindle with only two non-holiday or non-Federal Reserve weeks left in the year," said Birch Creek strategists.

Bonds have traded up since the company last week announced a tentative bondholder deal and project update and financing details.

The New York Power Authority created a new in-state conduit issuer to maximize savings and benefits for New Yorkers on a prepaid electricity deal.

The new-issue calendar falls to an estimated $1.154 billion, with $939.1 million negotiated deals on tap and $214.8 million of competitives.

The deal would give the company time to seek additional equity, debt and federal funds.

The long-awaited jobs report paints a mixed picture for market participants: nonfarm payrolls increased by a greater-than-expected119,000 in September, but the unemployment rate rose to 4.4%.

Flows into high-yield muni mutual funds had slowed over the past several weeks, and the past two weeks have seen outflows.

The market is in a bit of a lull right now as it braces for a deluge of economic data, which could spark volatility, said Jeff Timlin, a partner at Sage Advisory.

The muni market has "demonstrated more conviction with steady demand and appealing relative yields weighing on the long-end while shifting dynamics on the short-end have led to municipals selling-off," said Tim Iltz, fixed income credit and market analyst at HJ Sims.

Chicago Mayor Brandon Johnson is seeking City Council approval of $1.8 billion in new money general obligation bonds and $2 billion in refunding authority.