Coming off the primary market's most robust week of issuance this year, investors will see more than $6 billion hit the calendars this week – with almost a third of that issuance coming from one well-known California issuer.
VOICEOVER: Coming off the busiest week of the year, the municipal primary market is slowing down, but not slamming on the breaks heading into the long holiday weekend.
The $6.8 billion expected is still fairly robust for a historically light week heading into Memorial Day.
Leading the calendar, Cal Regents is set to sell a total of $2.06 billion of taxable and tax-exempts, making up a good chunk of the week’s total issuance.
Demand for munis remains robust and one trader added that there is a huge amount of cash around for California and New York credits, 10-years and in, on the yield curve.