Traders in the tax-exempt market gobbled up the high yields offered by Michigan Finance Authority in the first Detroit deal to price since the city’s bankruptcy filing July 18.
JPMorgan repriced $92 million of Michigan Finance Authority state aid revenue notes for the School District of Detroit, which yielded 4.375% priced at par maturing in August 2014. That is down from the 4.5% offered during preliminary pricing. The bonds are rated SP-1 by Standard & Poor’s. Traders in the tax-exempt market said the deal was very well received.