State of California

The U.S. Supreme Court is expected to hear oral arguments this fall in California v. Texas.

The state government, which was looking at multibillion-dollar surpluses before the coronavirus struck, is now facing a $54.3 billion of red ink.

The California Supreme Court will hold online oral arguments Tuesday in a public pension case that could challenge the so-called "California Rule."

April finished with $23.7 billion of issuance, a 15% decline from the $27.9 billion in April 2019. Volatility from the pandemic has caused erratic swings in benchmark yields, resulting in the lowest muni volume total in the month since 2011.

California's response to COVID-19 became a factor in Verity Health System's Chapter 11 proceedings.

Secondary market trading showed yields rising slightly, but the primary market again showed signs of life, as demand for the asset class seems to be gaining ground.

A stratified credit differentiation can be expected to linger for the foreseeable future until revenue streams in sales-tax and other project-backed bonds are more fully restored. Pension obligation bonds are back in California.

Hard on the heels of last week's successful California sale, the municipal bond market will see some much needed supply head its way this week.

While many new-issues are still on the day-to-day calendar for next week, more are being slated to price on specific days, signaling that dealers and issuers are ready to again test the primary.

The secondary market took a backseat to the primary Thursday with yields holding steady while Lipper reported $833 million of inflows, the first since February 26.