Markets

Washington State Treasurer James McIntire surprised insiders with his decision to not seek re-election after two terms in a position that includes oversight of state bond sales.

Municipal portfolio managers, strategists, analysts, and directors, weighed in on the impact of December's interest rate increase and other predictions for 2016.

In the week ended Dec. 24, the weekly average yield to maturity of the Bond Buyer Municipal Bond Index fell to 4.22% from 4.24% in the previous week. The BB40 Index is based on the price of 40 long-term bonds.

Respondents to an annual SIFMA survey predict total municipal issuance will hit $431.5 billion next year, while they predict that the federal funds rate will rise to 1% by the end of 2016.

Issuers say green bonds are here to stay, and that efforts to increase transparency about the environmental benefits will pay off with a broader investor base and cheaper financing costs.

The "gradual and contingent nature" of the California Public Employees' Retirement System plan to revise its investment return assumptions could mean substantial fiscal risk to California governments, Moody's Investors service said Friday.

With natural gas prices falling to record lows, public power utilities should benefit with stronger operating margins and more flexibility to adjust rates to offset other costs, according to Fitch Ratings.

The weekly average yield to maturity of The Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, fell two basis points to 4.24% in the week ended Dec. 17 from 4.26% in the prior week.

Municipal experts awaiting the Federal Reserve’s decision on interest rates said a host of other stressors – from a lack of supply and credit concerns to unfunded pension liabilities and yield curve positioning – were high on their list of concerns heading into the new year.

In the week ended Dec. 10, the weekly average yield to maturity of the Bond Buyer Municipal Bond Index fell to 4.26% from 4.27% in the previous week. The BB40 Index is based on the price of 40 long-term bonds.