State of New Jersey

The strong demand amid a dearth of new municipal issuance by states and a reach for yield also allowed New Jersey to skip a planned taxable portion and officials announced it would not need to access the Fed's Municipal Liquidity Facility.

Municipals were steady to stronger ahead of $11.5 billion of supply as requests for new municipal bond identifiers surged almost 40% last month.

Municipals firmed Friday, with yields falling by as much as two basis points, as coronavirus threats grow and a flight-to-safety resumes.

The $4.3 billion deal will test the state's low bond ratings — punctuated by another downgrade — against the municipal market's continuing demand for paper.

Municipal bonds strengthened Thursday as yields fell by as much as four basis points on AAA curves but coronavirus vaccine rally in stocks slowed and UST, munis regained ground.

John Hallacy, founder of John Hallacy Consulting LLC, and Andrew Coen, Bond Buyer Northeast regional reporter, talk about next week’s $4 billion COVID-19 emergency GO and taxable social bond sale by New Jersey. Chip Barnett moderates the discussion on what it means for the state and whether the issue will become muni bond market benchmarks with an extra appeal to international investors. (15 minutes)

S&P Global Ratings downgrades the Garden State's general obligation bonds one notch to BBB-plus from A-minus.

The legalization is projected to generate about $120 million for the fiscally stressed state once the market gets established, which won’t be for another two to three years.

New Jersey said it expects to issue up to $4.5 billion of tax-exempt and taxable bonds the week of Nov. 18 under the COVID-19 Emergency Bond Act.

New Jersey had a choice between the Federal Reserve’s Municipal Liquidity Facility and the muni market for its upcoming $4 billion borrowing.