Markets

The closure of the Treasury SLGS window has added a degree of difficulty to some refunding deals.

It will be yet another busy week in the primary market as issuers continue to take advantage of the current low interest rate environment. Long-term municipal bond volume for the week of May 18 is expected to total roughly $9 billion, according to estimates from Ipreo and The Bond Buyer.

For the week ended May 14, the weekly average yield to maturity of the Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, increased two basis points to 4.41% from 4.39% the previous week.

Expect more downgrades for Chicago after Moody’s Investors Service dropped the city to junk, creating new liquidity concerns, warns Nuveen Asset Management LLC.

For investors with risk tolerance, uninsured senior COFINA bonds are attractive compared with other island debt as well as COFINA’s own subordinate debt, Barclays analysts said.

State Rep. John McGinnis wants to shorten the Pennsylvania pension amortization period from 30 years to 20.

The municipal market’s credit and rate volatility last month could produce buying opportunities, according to a report from BlackRock Inc.

Weekly volume is estimated to come in at $8.4 billion, with the Salt River Project agricultural improvement and power district's $833 million of electric system revenue bonds leading the way. The state of Connecticut is coming with $500 million of GO bonds and the PA turnpike commission is scheduled to come with $494.56 million of turnpike revenue bonds.

The weekly average yield to maturity of The Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, increased nine basis points to 4.39% in the week ended May 7 from 4.30% in the previous week.

Default rates are far higher for corporates than for munis with the same ratings, a discrepancy regulators are hoping to address with a rule that takes effect June 15.