Making up for the shortened week, Friday's primary market was particularly active, pricing deals and continuing the strength seen in the asset class all week.
After yesterday's repricing, the State Public Works Board of the State of California announced even tighter spreads on its lease revenue bonds for its Department of Corrections and Rehabilitation. Rated A1 by Moody's Investor Services and A-minus by Standard & Poor's and Fitch Ratings, yields on the $108.185 million Series D tranche ranged from 0.18% on a 3% coupon in 2015 through 2.68% on a 5% coupon in 2029, according to data provided by Ipreo. The $76.755 million Series E tranche was priced to yield a range of 0.65% on a 2% coupon in 2017 through 3.27% on a 5% coupon in 2039. The $64.585 million Series F tranche was priced to yield a range of 0.18% on a 3% coupon in 2015 through 1.20% on a 5% coupon in 2019.
The proceeds of the deal went to finance various state prisons in California, according to the POS.
The South Carolina Public Service Authority also announced final priced for its $736 million tax-exempt refunding deal from Wednesday. The final yields ranges from 1.46% on a 4% coupon in 2020 through 3.46% on a 5% coupon in 2046, according to Ipreo. Ticketing was scheduled for 11am Friday. The deal carries a split rating; Moody's awarded the deal an A1, S&P a AA-minus, and Fitch an A-plus.
Thursday's School Board of Miami-Dade County also issued a repricing on Friday morning for its $276 million certificate of participation deal. Final yields ranged from 0.76% on a 4% coupon in 2017 through 3.16% on a 5% coupon in 2031.
Amid the active pricing, Lipper data indicated that inflows into municipal market funds dropped this week by 41.7%.
Funds that report weekly said inflows fell to $443.9 million for the period ending Oct. 15, from $762.2 million the week before, according to Lipper FMI.
Assets of all weekly reporting municipal funds rose to $315.8 billion from $313 billion the week before. The four-week moving average inflow grew to $507.9 million from $446 million.
Inflows for long-term muni funds increased, totaling $553.96 million from $441.7 million previously.
Long-term municipal mutual fund assets rose to $166.5 billion from $164.5 billion last week. The four-week moving average of the long-term fund was an inflow of $359.7 million, up from $244.8 million last week.
High yield fund inflows jumped to $340.6 million from $259.9 million the week before. Assets increased to $482.9 billion from $475.7 billion. The four-week moving average was $258.3 million, up from $198.4 million.
