Markets

Laws banning banks from underwriting municipal bond deals because of their fossil fuel or firearm policies dramatically boosted underwriting spreads, a business group's study said.

The New York MTA has not sold fixed-rate transportation revenue bonds since February 2021. The first maturity of that deal (4% 11/15/44) priced at +81 and was evaluated at +78 as of Wednesday by BVAL, according to CreditSights strategists. The same maturity but with a 5% coupon was priced at +59 to BVAL.

Marc Livolsi was promoted to lead U.S. Public Finance New Issue Marketing and Business Development, and Evan Boulukos will lead Assured's Secondary Markets desk, both of whom will report to Chris Chafizadeh, senior managing director and co-head of Public Finance.

Municipal bond buyers looking for yield need look no further than the OTB's non-rated tax-exempt revenue bond deal that's set to be priced this week.

"While rate volatility returned this week, should the market return to range-bound levels for a protracted period of time, investors might want to add exposure to sectors that provide the most value and have underperformed thus far," Barclays said. 

Inflows continued for the third consecutive week as LSEG Lipper report fund inflows of $295.5 million for the week ending Wednesday with high-yield hitting the 10th consecutive week of positive flows.

BofA Securities is the latest firm to scoop up former employees from Citi, which decided to shutter its muni division late last year.

The Investment Company Institute reported larger inflows into municipal bond mutual funds for the week ending March 6, with investors adding $956 million to funds following $57 million the week prior.

Though the economists don't expect a recession looking out two years, there is a lot of risk related to the conflict in the middle east and uncertainty around monetary policy.

The American High-Speed Rail Act has seen "some initial interest from Republican lawmakers – I'm working hard to get them on board too," said bill sponsor Rep. Seth Moulton, D-Mass.