Markets

The action continued on Tuesday in the primary market as issuers flooded the market ahead of the tax reform vote, in order to get deals done and closed before the end of the year.

The week got off to a fast start on Monday and will pick up right where it left off on Tuesday, as issuers are doing what they can to get deals done and in the books before yearend. Tuesday is expected to be one of the last busiest primary days of the year.

The U.S. third quarter current account deficit narrowed sharply to $100.6 billion from $124.4 billion.

The pace of housing starts posted a surprise 3.3% gain to a 1.297 million seasonally adjusted annual rate in November, well ahead of expectations for a 1.250 million pace.

Market experts see less municipal bond volume next year, far fewer bank loans, new buyers of bonds, and more volatility if the tax bill is enacted as expected.

In an unusually busy Monday, municipal bond issuers tried to beat the clock and complete sales ahead of the impending tax reform.

The Railsplitter Tobacco Settlement Authority will price a $679 million current and advance refunding of tobacco bonds.

Approval of the tax reform bill led the Florida Development Finance Corp. to cancel its Monday meeting to approve a deal for the train project.

A limited tax base and heavy legacy obligations have hamstrung the city, according to the rating agency.

Now that the uncertainty of tax legislation and how it relates to munis is gone, market participants can focus on the upcoming calendar — as it will most likely be the last big supply week for a while, with Christmas and New Year’s right around the corner.