Municipal investors have been supply starved but will get just what the doctor ordered; a nice big dose of supply. The mini surge will feature two billion dollar deals – one of the high grade variety and the other more of a high yield deal. With volatility in the atmosphere and big deals few and far between, investors should jump to grab the paper since who knows when the next big deal is coming.
Volatility has kept investors on the sidelines, but this weeks’ slate of $7.5 billion should pull them in.
California, the top muni bond issuer for the past two years, is having its first sale of 2018.
On Wednesday, it’s bring $2.1 billion of GO various purpose and refunding bonds to market, and the Oklahoma Development Finance Authority is slated to sell a total of $1.2 billion on Tuesday.
Market participants expect the calendar to be kind to those who have been patient.