- Most active: The most-traded issue on Wednesday was the IL Housing Dev Rev 4.75% due in 2048: with 153 trades totaling $39.7 million. The coupons in this week’s underwritings are interesting. We had 4.25% on Monday, 4.50% Tuesday, and 4.75% yesterday. It will be something to watch today, given the market movement.
- The New York City Transitional Finance Authority's $1 billion bond issue would be the year's 16th $1 billion or more municipal bond deal. The 15 deals already issued lag last year's pace of 19 by almost 27%. For all of 2022, there were 24 deals of $1 billion or more. The issue is scheduled for underwriting on 7/19.
- Primary market: This week's biggest underwritings include a $969.9 million issue for Denton ISD TX and a $547.1 million deal for Intermountain Power Agency UT.
- Most active: The most-traded issue on Monday was the Springdale AR 4.25% revenue bond due in 2053: 101 trades totaling $5.1 million. We should see more 4.25% coupons come into play and be relevant with the current yields.
- The DRL Group has bought IL paper for the last seven years, heavy in GO debt while commenting on the overall budget cash balance containing to increase. The General fund revenue reached a record for the year that ended June 30, with sales and corporate income taxes boosting collections. The state finished fiscal 2023 with a base fund revenue of $50.7B, up .7% YOY. As we have indicated to our clients and prospects, we do not have a credit issue, only a market Clients (and prospects) look to us for high-grade paper while commenting on the markets - we are among the few that do this.
- Visible supply will finish the week at $9.9B, slightly up from the average of $8.8B for the year. This number is down from last year, as the average was $12.8B for 2022. As we have been discussing, this will remain low for the foreseeable future.
At The DRL Group, we specialize in helping high-net-worth investors maximize
tax-free returns by proactively maintaining their custom bond portfolios through all market conditions.
We would love the opportunity to visit with you further. Please click here to schedule a call with one of our specialists or contact us at 281-398-8600.
605-B Park Grove
Katy, TX 77450
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