Buy side

The municipal market’s credit and rate volatility last month could produce buying opportunities, according to a report from BlackRock Inc.

Weekly volume is estimated to come in at $8.4 billion, with the Salt River Project agricultural improvement and power district's $833 million of electric system revenue bonds leading the way. The state of Connecticut is coming with $500 million of GO bonds and the PA turnpike commission is scheduled to come with $494.56 million of turnpike revenue bonds.

The weekly average yield to maturity of The Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, increased nine basis points to 4.39% in the week ended May 7 from 4.30% in the previous week.

Default rates are far higher for corporates than for munis with the same ratings, a discrepancy regulators are hoping to address with a rule that takes effect June 15.

Lumesis Inc. has formed a strategic relationship with Pershing LLC that will give immediate access to DIVER Advisor’s municipal bond reports and compliance solutions to Pershing’s clients.

Tim McGregor, director of municipal fixed income management at Northern Trust, says volatility is creating opportunities.

Municipal bond volume is expected to rebound to more than $9 billion in the coming week, as issuers take advantage of post-tax season demand.

For the week ended April 30, the weekly average yield to maturity of the Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, increased four basis points to 4.30% from 4.26% from the previous week.

Chicago’s CFO, Lois Scott, is promoting the city's new plan to take on $200 million of new debt to pay for canceling interest-rate swaps and to phase out debt restructurings.

After 42 years at Moody's Investors Service, John Incorvaia is retiring after spending most of his analytical career covering Florida. April 30 is his last day on the job.

Bondholders for a failed private jail would receive about 55 cents on the dollar under a proposed sale of the $35.4 million lockup to Burnet County, Texas, according to a trustee's disclosure.

Last week's aborted Louisiana State University bond deal stemmed from what an analyst called a “shell game” in which state lawmakers try to balance budgets by cutting aid to localities.

Chapter 9 guru James Spiotto says states are increasingly realizing the importance of early intervention in their distressed cities to avoid the crisis of a municipal bankruptcy where everyone loses.

Older companies often face challenges in adapting to new challenges, but they have advantages as well, according to chief executives, including Alexandra Lebenthal, at the Milken Institute’s Global Conference.

Variable rate debt represents 8% of the bond portfolio of New York's Metropolitan Transportation Authority — well below its 25% threshold, said finance manager Patrick McCoy.

Municipal volume is forecast to plunge in the week ahead, with no negotiated deals bigger than $209 million and only eight issues larger than $100 million.

The weekly average yield to maturity of The Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, increased three basis points to 4.26% from 4.23% for the week ended April 16.

Rhode Island's serious financial challenges extend well beyond the headline 38 Studios bond financing controversy, said a report by Gurtin Fixed Income Management.

Muni managers are earning attractive yields from lower quality bonds and minimizing their exposure to the long end of the yield curve.

Gary Binkiewicz, a 35-year veteran in the municipal bond market, has joined R. Seelaus and Co. as a senior vice president and head municipal bond analyst after just over two years at First Southwest, where held the same position.