Securitization

A full review of the deal pushes its consideration by the Texas Bond Review Board into January.

Issuance shrinks to $722 million while Bond Buyer 30-day visible supply sits at little more than $7 billion.

Municipals improved again Thursday, pushing the 10-year yield firmly below 3%, while Refinitiv Lipper reported $604.704 million of inflows into municipal bond mutual funds for the week ending Wednesday.

The deal has until the end of Friday to clear the Texas Bond Review Board, whose members had no questions about the transaction when it was presented at a Thursday meeting.

Investment bank expands with three former Citigroup muni veterans at the helm.

As market participants navigate through the remaining weeks of 2022, Jeff Lipton, managing director of credit research at Oppenheimer Inc., expects munis to maintain their outperformance over USTs

Triple-A yields fell five to eight basis points while UST saw yields fall up to nine out long, moving the 30-year UST below 4% for the first time since mid-October.

Illinois raised its fiscal 2023 revenue estimates by $3.69 billion, giving Gov. J.B. Pritzker enough to propose doubling the state's $1 billion rainy day fund.

If it passes legal muster, Wisconsin counties will decide whether to participate in what would likely be the first securitization of opioid settlement payments.

Munis were in their own lane while broader markets were mixed Monday as participants digested various Fed officials' comments on inflation and rate hike schedules.

Refinitiv Lipper reported $2.537 billion of outflows from municipal bond mutual funds for the week ending Wednesday after $2.389 billion the week prior.

Municipal bond mutual funds saw more losses on Wednesday with the Investment Company Institute reporting another week of multi-billion-dollar outflows, bringing year-to-date losses to $123.3 billion.

The market has seen outflows for 13 straight weeks, per Refinitiv Lipper, but Nuveen strategists Anders S. Persson and John V. Miller said "selling is due primarily to investors harvesting tax losses."

Voters will decide on more than $60 billion of bond ballot measures Tuesday with New York voters faced with the largest amount at $4.2 billion.

ICE TMC, part of ICE Bonds, provides market participants access to an all-to-all market for trading munis and other bonds.

Investors will be greeted Monday with a new-issue calendar estimated at $5.268 billion.

High-yield saw outflows of $867.067 million after $594.497 million of outflows the week prior while exchange-traded funds saw inflows of $736.967 million after $444.544 million of inflows the previous week.

Investors pulled $3.843 billion from mutual funds in the week ending Oct. 26 after $3.876 billion of outflows the previous week, according to ICI.

October returns were in the red with the Bloomberg Municipal Index showing a loss of 0.83% for the month, bringing total losses in 2022 to 12.86%. Only May and July saw positive returns for the asset class.

With the Federal Open Market Committee meeting this week and the next week shortened by the bond market observance of Veterans Day, CreditSights strategists said "investors should be prepared for two weeks of subdued new issuance."