There will be few sizable deals for investors to choose from in an abbreviated trading session this week due to the observance of the Presidents Day holiday, as $2.42 billion of expected new-issue volume will come to market after last week's revised total of $4.40 billion.
This week, the market is expecting to see $1.22 billion of competitive new issues versus a revised total of $947.8 million last week, and $1.19 billion of negotiated deals compared with a revised $3.45 billion last week, according to Thomson Financial.
The largest deal on the calendar will be a $385 million competitive offering tomorrow from the New York Local Government Assistance Corp. The bonds are rated Aa3 by Moody's Investors Service and AAA by Standard & Poor's, and are structured to mature from 2009 to 2021.
In nearby New Jersey, a $105 million public improvement bond issue from Union County, N.J., is expected to be priced competitively tomorrow in a deal that is rated AA-plus by Standard & Poor's.
Switching gears, the largest negotiated deal of the week will be a $115 million, limited-tax general obligation and refunding sale from King County, Wash., Public Hospital District No. 1.
Morgan Stanleywill price the deal on Wednesday with a structure that is slated to mature from 2011 to 2028 with term bonds in 2033 and 2037. The bonds will be insured by Assured Guaranty Corp.
In addition, the Massachusetts State College Building Authority will sell $90 million of project revenue bonds on Thursday in a negotiated deal being priced by Bear, Stearns & Co.
The bonds are expected to be structured as serials maturing from 2009 to 2028 and term bonds due in 2033 and 2038. Moody's is expected to rate the bonds A1, while Standard & Poor's is expected to rate them A-plus.
Meanwhile, a $90 million unlimited-tax school building sale from the Beaumont Independent School District, is planned for pricing on Thursday by UBS Securities LLC. The bonds, which are backed by Texas' triple-A rated Permanent School Fund, are structured to mature from 2010 to 2038.
In Florida, the activity will be led by a $155 million competitive deal from Fort Lauderdale on Thursday. The revenue bond issue is expected to be rated Aa2 by Moody's and AA by Standard & Poor's, and will mature from 2009 to 2036.
Elsewhere in the state, Sarasota County will sell limited ad-valorem tax bonds in a deal that will be priced Thursday by Banc of America SecuritiesLLC after a one-day retail order period tomorrow.
The bonds are rated Aa3 by Moody's and A-plus from Standard & Poor's.