News and Information from Bond Buyer

Muni participants predict 2017 may bring the first major tax legislation in three decades, and they are pulling out all the stops to make sure the muni exemption is maintained to finance infrastructure.

While most muni market participants agree that 2017 could be the year of comprehensive tax reform, they have mixed views on whether the muni exemption is safe under the tax proposals of President-Elect Donald Trump and House Republicans.

Indicator Last Report Forecast Actual Construction Spending Oct.: +0.6% Nov.: +0.5% Nov.: +0.9% ISM Manufacturing PMI Nov.: 53.2 Dec.: 53.5 Dec.: 54.7

The overall economy grew for the ninety-first straight time, while the manufacturing sector expanded for the fourth consecutive month, the Institute for Supply Management reported Tuesday.

The municipal bond market returns to work on Tuesday, the first trading day of 2017. Traders are set to see a $3 billion new issue slate this week, with the calendar composed of $2.92 billion of negotiated deals and $84.2 million of competitive sales.

Jan. 3, 2017 Southwest: Plain/Insured GO Yield Curve* State Ratings One-Year Five-Year 10-Year 30-Year Arizona Aa3/AA-/NR 1.02 1.91 2.53 3.28 Arkansas Aa1/AA/NR 1 1.87 2.46 3.2 Colorado Aa1/AA/NR 1 1.9 2.52 3.27 Kansas Aa2/AA/NR 1 1.91 2.55 3.29 New Mexico Aa1/AA/NR 0.99 1.84 2.43 3.17 Oklahoma Aa2/AA+/AA+ 1.01 1.95 2.55 3.29 Texas Aaa/AAA/AAA 1 1.88 2.48 3.25 Utah Aaa/AAA/AAA 0.97 1.79 2.33 3.05

1/2/2017 12/26/2016 State Amount ($000s) Iss Amount ($000s) Chg in Amt ($000s) Arizona 2 $183,915 1 $75,735 $108,180 Arkansas 0 0 0 0 0 Colorado 5 675,375 3 45,375 630,000 Kansas 3 16,645 2 11,735 4,910 New Mexico 0 0 0 0 0 Oklahoma 12 21,510 12 21,510 0 Texas 33 1,771,825 22 619,780 1,152,045 Utah 2 10,495 0 0 10,495

Tuesday, January 3 Issuer St Description Amount

Wednesday, January 4 Issuer St Description Amount

Week Of January 3 Issuer St Description Amount

Week Of January 3 Issuer St Description Amount

Jan. 2, 2017 Northeast: Plain/Insured GO Yield Curve* State Ratings One-Year Five-Year 10-Year 30-Year Connecticut Aa3/AA-/AA- 1.17 2.34 2.99 3.73 Delaware Aaa/AAA/AAA 0.97 1.79 2.33 3.04 Maine Aa2/AA/AA 0.99 1.85 2.44 3.18 Maryland Aaa/AAA/AAA 0.97 1.81 2.36 3.05 Massachusetts Aa1/AA+/AA+ 1 1.89 2.49 3.22 New Hampshire Aa1/AA/AA+ 1.01 1.89 2.45 3.17 New Jersey A2/A/A 1.32 2.5 3.23 3.95 New York Aa1/AA+/AA+ 0.97 1.82 2.42 3.24 Pennsylvania Aa3/AA-/AA- 1.07 2.23 2.99 3.7 Rhode Island Aa2/AA/AA 1.02 1.97 2.64 3.39 Vermont Aaa/AA+/AAA 0.97 1.8 2.35 3.06 Dist. of Columbia Aa1/AA/AA 1 1.92 2.52 3.27 Puerto Rico Caa3/CC/CC 45.97 16.34 11.78 8.6

12/30/2016 12/23/2016 State # Iss Amount ($000s) # Iss Amount ($000s) Chg in Amt ($000s) Connecticut 1 $14,185 0 $0 $14,185 Delaware 1 39,940 1 39,940 0 Maine 1 98,135 1 98,135 0 Maryland 3 75,361 3 75,361 0 Massachusetts 1 10,945 0 0 10,945 New Hampshire 0 0 0 0 0 New Jersey 4 36,294 2 18,760 17,534 New York 9 1,183,885 3 1,059,385 124,500 Pennsylvania 9 758,660 8 742,835 15,825 Rhode Island 1 40,000 1 40,000 0 Vermont 0 0 0 0 0 District of Columbia 1 311,520 0 0 311,520 Puerto Rico 1 750,000 1 750,000 0

Government

A U.S. Congressional Research Service report may undermine the position on Puerto Rico’s status held by one of the island’s two main political parties, according to an opposition party leader.

Top-quality municipal bonds closed out the year on a strong note in an abbreviated trading session on Friday, as the market got set for some new education deals on the upcoming week's holiday-shortened slate.

California Gov. Jerry Brown appointed two of his closest advisors on environmental issues to the California Public Utilities Commission.

Municipal bond volume reached an all-time high in 2016, driven by refundings in the middle of the year, as issuers looked to take advantage of low borrowing costs.

The seasonally adjusted Milwaukee Report on Business declined to 51.23 in December from 54.11 in November, the Institute for Supply Management-Milwaukee reported Friday.

The University of Pittsburgh intends to sell roughly $525 million of Series 2017A taxable university refunding bonds.