Municipal bond sales in the U.S. are set to decrease in the next month while the amount of redemptions and maturing debt rises.
States and localities plan to sell $14.6 billion of bonds over the next 30 days, according to data compiled by Bloomberg. A week ago, the calendar showed $20.8 billion planned for the coming month. Supply figures exclude derivatives and variable-rate debt. Some municipalities set their deals less than a month before borrowing.
In the coming weeks, Los Angeles Community College District plans to sell $1.33 billion of bonds, Dallas has scheduled $529 million, the Bay Area Toll Authority in California will offer $536 million and Harris County/Houston Sports Authority will bring $458 million to market.
Municipalities have announced $15.2 billion of redemptions and an additional $12.7 billion of debt matures in the next 30 days, compared with the $27.5 billion total that was scheduled a week ago.
Issuers from Illinois have the most debt coming due with $2.55 billion, followed by New Jersey at $1.33 billion and New York with $1.13 billion. The state of Illinois has the biggest amount of securities maturing, with $952 million.
The $3.5 trillion municipal market contracted by $641 million last month. Sales of $34.8 billion compared with redemptions and maturing debt that totaled $35.5 billion.
Bloomberg News
By Ken Kohn Dec 8, 2014 4:16 AM PT
To contact the reporter on this story: Ken Kohn in New York at [email protected]
To contact the editors responsible for this story: Stephen Merelman at [email protected] Stacie Sherman, Mark Tannenbaum