NEW YORK – The tax-exempt market was steady to slightly weaker as a mix of both attention towards the primary and some focus on the secondary spurred activity.
“We don’t like the value in new deals,” a San Francisco trader said. “We like 5% coupons or better and a lot of stuff coming are not 5% coupons. We also like shorter calls. So we are looking mostly in the secondary where you can buy shorter calls, get paid a little, and get an extra kick.”