Buy side

Nuveen LLC reached an agreement to sell its 11% equity stake in Vistra Vision to Vistra Corp., that started as municipal bonds ensnared in a bankruptcy.

The record pace of municipal bond supply this year is driven in part by cities and states realizing projects won't get any cheaper if they wait.

"Given increasing student demand for charter schools, we anticipate continued strong supply issued into the municipal market," according to Nuveen.

While supply falls next week as investors await their first Fed rate cut in four years, it should pick up after the FOMC, Barclays PLC said, adding the 30-day visible pipeline "is at relatively manageable levels at the moment." Bond Buyer 30-day visible supply is at $10.09 billion.

Household ownership of individual bonds was the largest category of muni ownership at 44.6%, mutual funds at 19.2%, exchange-traded funds at 3.1% and U.S. banks at 12.4%. While not detailed in the Federal Reserve data, SMAs may hold up to $1.6 trillion currently.

California's state government typically pushes out billions of dollars of debt from August to November. This year there may be a shift in buy side sentiment.

Municipal bond mutual funds saw inflows as investors added $1.258 billion to funds — the second-largest inflow figure year-to-date after $1.413 billion of inflows for the week ending Jan. 31.

The commission approved $73 million of limited obligation bonds for Rowan County schools.

Issuance as of Wednesday is at $345.327 billion, a 32.7% increase over 2023. The Bond Buyer 30-day visible calendar on Monday was at $20.02 billion, the largest in nearly four years.

Municipals lagged the UST moves again, cheapening ratios and creating a valuable entry point for investors looking for compelling taxable equivalent yields, particularly 10-years and out.