Calif. Close: Munis Finish Unch

The California municipal market was unchanged today, with the Treasury market.
“It’s a very quiet day, not much going on,” a trader in San Francisco said. “Not a lot of trading. It started off a little weaker, but came back. I’d call the market unchanged and uninterested.”
To read the column in its entirety, go to The Bond Buyer web site.
Michael.Scarchilli-AT-sourcemedia-DOT-com
Jack.Herman-AT-sourcemedia-DOT-com

Market Close: Munis Finish Unch

The municipal market was unchanged today, with the Treasury market.
“The market is a little queasy, like it may have had a bad taco this weekend, even though Treasuries are holding in,” a trader in Chicago said. “To put something out there, you have to be a bit concessionary. It’s kind of like there are two different traders out there: the quick and the dead. You just have to make do."
To read the column in its entirety, go to The Bond Buyer web site.
Michael.Scarchilli-AT-sourcemedia-DOT-com
Jack.Herman-AT-sourcemedia-DOT-com

Market Post: Munis Unch in Afternoon Trade

The municipal market was unchanged today, with the Treasury market firmer.
“The market is a little queasy, like it may have had a bad taco this weekend, even though Treasuries are holding in,” a trader in Chicago said. “To put something out there, you have to be a bit concessionary. It’s kind of like there are two different traders out there: the quick and the dead. You just have to make do.
To read the column in its entirety, go to The Bond Buyer web site.
Michael.Scarchilli-AT-sourcemedia-DOT-com
Jack.Herman-AT-sourcemedia-DOT-com

The Next Hot Muni Controversy?

FORT LAUDERDALE – First bond insurance, then the muni ratings scale.

Now, two more near-universal facts of life in the municipal market – issuers’ employing a 3% present-value savings analysis as the threshold for deciding whether or not to execute a refunding, and their habit of selling 30-year bonds with a 10-year call – came under fire Sunday in a thought-provoking session at the Government Finance Officers Association Annual Conference featuring quantitative expert Andrew Kalotay.

In the course of a broad session on how bonds are priced in the current marketplace, Kalotay challenged the audience to also calculate the “option value” they forfeit when a refunding precludes the chance of future deals.

“I’ve seen financial advisers’ reports that say ‘we’ve confirmed the calculated savings are accurate,’” he said.  “Well, big deal.  That’s the beginning of the analysis, not the end.”

Market Post: Munis Unch to Slightly Firmer in Morning Trade

The municipal market was unchanged to slightly firmer this morning.
“It’s very quiet,” a trader in New York said. “Brokers are quiet. [Treasury] bonds were higher [this morning], and now they’re easing a bit. The markets made a pretty good adjustment in yield [last week], and people are kind of nonplussed. They’re not overly anxious and not really looking to add to portfolios.”
To read the column in its entirety, go to The Bond Buyer web site.
Michael.Scarchilli-AT-sourcemedia-DOT-com
Jack.Herman-AT-sourcemedia-DOT-com