Municipal yields finish week flat to slightly firmer; Greenwich prices $55 million of BANs

By Sheri Kasprzak

New York, Jan. 18 - Municipal yields were unchanged to slightly firmer on Friday after a largely positive week, market sources reported.

"There's not a lot of activity, and we're mostly flat," one trader said.

"There might be a few spots where we're firmer, but I'd call it flat."

Meanwhile, the week ahead will be comparable to this past week, with more than $6.5 billion of new issues expected to hit the market, said Alan Schankel, managing director with Janney Montgomery Scott LLC.

More competition for students

Looking to the education sector, Fitch Ratings released a report Friday noting that recent and projected drops in high school students will create a "more competitive environment for most higher education institutions, further constraining tuition pricing flexibility."

The number of public and nonpublic high school graduates hit a peak of around 3.4 million in the 2010 to 2011 academic year, and that will decrease annually by up to 2.9% between 2011 and 2014 and remain relatively flat between 2014 and 2020, according to a report released by the Western Interstate Commission on Higher Education.

"Among other initiatives, many higher education institutions are enhancing their regional, national, and/or international outreach efforts to adapt to changing demographics," said Joanne Ferrigan, director of education and nonprofits for Fitch.

"Fitch anticipates that institutions already experiencing demand-driven financial pressures will likely be further affected by the continuation of this enrollment trend. The increasing importance of college or university education to career development counterbalances this trend to some extent, along with greater college participation."

Greenwich prices $55 million

The Town of Greenwich, Conn., sold $55 million of series 2013 general obligation bond anticipation notes, said a pricing sheet.

The notes (//F1+) were sold competitively with Morgan Stanley & Co. LLC winning the bid at a net interest cost of 0.161671%, said Peter Mynarski, the town's comptroller.

Mynarski said Friday that there were 12 bids for the offering.

The notes are due Jan. 23, 2014, have a 1% coupon and priced at par.

Proceeds will be used to finance capital needs for the town.

Baltimore deal set

Heading up competitive offerings for the week ahead, Baltimore County, Md., is scheduled to price $200 million of series 2013 bond anticipation notes on Wednesday.

The deal includes $60 million of series 2013 metropolitan district BANs and $140 million of series 2013 public improvement BANs.

The notes (MIG 1/SP-1+/F1+) are due Feb. 24, 2014, and proceeds from the sale will provide interim funding for the county's capital program.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.