CHICAGO -- Hours after the third Michigan issuer pulled a bond deal from a market still grappling with Detroit’s bankruptcy, a spokesman for Gov. Rick Snyder said the governor is aware of investor concerns, but believes the state remains filled with “smart, sound investments” for bond buyers.
Saginaw County decided to delay a $61 million taxable pension obligation bond deal set for Thursday. The underwriter, Fifth Third Securities, said the yields it would have taken to get the deal done were too high for the issuer, and that it will look to bring it back to market later. It was set to be the first sizable negotiated offering to come to market since Detroit filed for bankruptcy July 18. Instead, Saginaw became the third issuer in two weeks to opt to pull or postpone a deal. Genesee County last week pulled a $54 million bond deal, and the city of Battle Creek decided to shift a $16 million sale to the day-to-day calendar.