Market News Commentary - From The Desk of David Loesch 11.06.2018Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on November 6th, 2018
• Voters in AZ will be voting to save the state 275MM and help bail out two unfunded state regiment plans.
• Sales tax revenue from major cities soared in the 1st Q of 2018 and has continued through the year.
• Chicago sets Sales Tax bond sale to shore up their teetering pension system. This transaction will be 1.3B and will be used to help the overall pension fund and pay off existing debt. This offering has doubled from its original size of 665MM in just 2 weeks from 10/31/2018.
• JP Morgan indicated that it launched an actively managed exchange traded fund that will invest in intermediate maturity muni bonds. This is the second ETF that the company has launched this November.
• S&P downgraded PA Carbondale Area School District to BB commenting that ether liquidity in the district could become severely stressed in the near term.
• NYC continues to face future extreme health costs if they do not get their health system under control. One the past decade their health cost have increased 40B and has about 5B set aside to pay.
• Issuers sold 35B of bonds over the last month a 4% decrease YOY. This is the lowest for the first 10 months of a year since 2014.
• Trump appears that he would like to get a trade deal done with China, equity futures are up this November 2, morning on big on this news.
• Several counties in the US will be seeking bond issue votes to improve the safety in their schools. To my knowledge, this is one of the first bond issues requested for school “safety.” Miami Dade is the largest ask at 232MM, with Palm Beach second at 200MM.
• The street is stating if Democrats win control of the House it could lead lawmakers to push for proposals that would support MUNI bond issuance. A Democratic victory could mean a change in leadership on some committees to members who are interested in making it easier for states and local governments to take advantage of our markets.
• Election day is upon us, and many bonds will pass today, you will see new issues come out throughout the next 6 months from 11/6/2018 elections.
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This content is based on the opinions of David Loesch based on his review of articles from Bloomberg.com or CNBC.com.
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