The two biggest U.S. municipal bond deals so far this year, from the state of California and New York state’s development agency, will make up almost a third of the nearly $9 billion in total issuance in the muni market next week.
The week will be the third straight week of issuance in the $9 billion to $10 billion range and bring total issuance so far this year to around $74 billion compared to $81 billion during the same period last year, according to Thomson Reuters data.
California will dominate the calendar next week, issuing state general obligation bonds worth $2.05 billion, the single biggest deal so far this year. The lead underwriter is Citigroup.
New York’s Empire State Development Corporation will issue $1.23 billion in state income tax revenue bonds. The issue is being used to refund other state-supported debt. Bank of America Merrill Lynch is the lead underwriter on the sale.
Of the $8.96 billion of new issuance slated for next week, $7.63 billion is through negotiated deals. The total figure includes issuance of notes as well as bonds.
REUTERS
NEW YORK, MARCH 4
(Reporting by Edward Krudy; Editing by James Dalgleish)