The $273.8 million of Metro Atlanta Rapid Transit Authority revenue bonds were awarded to Bank of America Merrill Lynch Thursday. The deal was received with much demand.
"There is a lot of demand for specialty paper in Georgia," a trader in Florida said.
The largest deal in the competitive market came to market with much anticipated incremental yields.
"I'll probably be taking a look at Atlanta," a trader in Virginia said. "We have some presence in Georgia, have some accounts there. Traditionally it has not been a name we've been big buyers of, but Atlanta in general has seen some recovery. The deal should offer a little bit of incremental yield."
Yields ranged from 1.91% with a 5% coupon in 2021 to 4% with a 4% coupon in 2044. The bonds are callable at par in 2023.
"For a transportation system, it's historically been trading weaker in general, but has improved over time. It should offer a little bit of incremental yield over higher-grade Georgia bonds," the trader in Virginia said.
The deal is rated AA-plus by S&P and AA-minus by Fitch.
Citigroup Global Markets priced $325 million of Long Beach, Calif. revenue short term notes Thursday. Yields ranged from 1.01% with a 3% coupon in 2018 to 1.01% with a 5% coupon in 2018 without a call option. The deal is rated AA by both S&P and Fitch.
Mesirow Financial priced a four-part deal totaling $190.6 million of Chicago Park District limited tax GOs.
Yields on 78.3 million ranged from 0.24% with a 2% coupon in 2015 to 3.48% with a 5% coupon in 2029.
Yields on $45.9 million ranged from 0.68% with a 5% coupon in 2017 to 3.87% with a5% coupon in 2033.
Yields on $40.4 million ranged from 3.87% with a5% coupon in 2033 to 4.05% with a5% coupon in 2039. These three series are callable at par in 2024.
Yields on $26 million ranged from 0.72% with a3% coupon in 2016 to 2.61% with a 5% coupon in 2021 without a call option. The entire deal received an AA-plus rating from S&P and an AA-minus rating by Fitch.
Bank of America Merrill Lynch priced a four-part deal totaling $140.3 million of Los Angeles County Regional Financing Authority mortgage loan insurance.
The $45 million entrance fee redemption bond has a 1.27% yield with a 2.50% coupon in 2020 and is callable at par in 2015. Yields for $44.8 million ranged from 1.57% with a3% coupon in 2019 to 4.03% with a 5% coupon in 2044. The bonds are callable at par in 2022 with term bonds in 2034 and 2044.
The $25 million series has a 1.87% yield with a 3% coupon maturing in 2021. The second series of $25 million has a 1.45% yield with a 3% coupon in 2020. Both series are callable at par in 2015.The deal received an A rating from both S&P and Fitch.
Munis steadied across the curve Thursday afternoon.
Treasuries strengthened Thursday afternoon, with the 30-year yield, the 10-year benchmark and the two-year falling two basis points each to 3.43%, 2.59% and 0.38%, respectively.
