Buy side

Municipal investors at client meetings with BlackRock are expressing more concern about rising interest rates than about the potential impact of tax reform – to the surprise of officials in the firm’s muni group.

Short-term note issuance slipped 1.5% in 2016 as continued austerity among state and local governments and attractive long-term interest rates kept the sector in a downward trend.

The weekly average yield to maturity of The Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, fell one basis point to 4.25% in the week ended Feb 10 from 4.26% in the previous week.

Tucked into the Illinois Senate's "Grand Bargain" budget legislation is a bill to authorize a new type of local government bond that would benefit Chicago and other home rule communities.

New language designed to protect investors appeared in the offering documents of a recent municipal bond deal.

Private placement bond deals helped push volume to record levels in 2016, even as some observers remain concerned about transparency and value in the deals.

The weekly average yield to maturity of The Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices was steady at 4.26% from the previous week.

Retail municipal investors who prefer discount bonds are becoming more aware of the tax implications of the de minimis rule as interest rates rise.

Fitch Ratings issued a report to criticize Moody’s Investors Services’ recent assessment of Chicago Public Schools.

In the week ended Jan.26, the weekly average yield to maturity of the Bond Buyer Municipal Bond Index rose seven basis points to 4.26% from 4.19% in the previous week. The BB40 Index is based on the price of 40 long-term bonds.