Muni Issuance Climbs to $14.7 Billion as August Technicals Support Demand
Updated
Updated · Bond Buyer · Aug 17
Muni Issuance Climbs to $14.7 Billion as August Technicals Support Demand
1 articles · Updated · Bond Buyer · Aug 17
Summary
$14.692 billion of municipal bond issuance is slated for this week, including $12.326 billion of negotiated deals and $2.366 billion of competitive sales.
Recent muni strength, seasonal reinvestment demand and strong investor inflows are supporting the market, even as August trading can still turn volatile.
$2.706 billion from the Los Angeles Department of Airports leads the calendar, followed by $1.915 billion from the New York City Transitional Finance Authority; large deals are expected to test demand in premarketing.
Nearly $50 billion of August supply would match the past two years, but Barclays said valuations have grown richer since July's selloff and summer technical tailwinds should fade after the redemption period.
Barclays remains constructive on munis longer term, yet sees weakening liquidity and elevated issuance as reasons to wait for a better entry point before adding risk.