Jan 6 New York's Triborough Bridge and Tunnel
Authority will lead next week's U.S. municipal bond calendar
with a $665 million deal that is the largest of some $8.9
billion in sales.
The authority, a unit of the Metropolitan Transportation
Authority, will price $400 million of refunding bonds and $265
million of general revenue bonds in a negotiated deal through
lead underwriter Goldman Sachs & Co.
The MTA plans fare and toll increases and is continuing to
reduce costs, according to its most recent disclosure statement.
It is also attempting to rein in expenses by paying down its
pension liability when possible, cutting health and debt service
costs, and hedging fuel purchases.
Issuers in New York state plan to sell nearly $4.3 billion
of debt in the first quarter, about 70 percent of which will be
new money, according to a tentative schedule from New York State
Comptroller Thomas DiNapoli on Thursday.
Also next week, Wisconsin will price about $524 million in
negotiated general fund refunding bonds, while Texas will be the
most heavily represented state, with $1.1 billion in total
negotiated deals. That includes $389 million in revenue bonds by
the Texas A&M University System and about $347 million by the
city of Austin for airport system revenue bonds.
The largest competitive bond deals will come out of
Washington state, which on Tuesday plans to issue $473 million
in new various purpose general obligation bonds and $136 million
in GO refunding bonds. Seattle will price $190 million of water
system improvement refunding bonds on Wednesday.
Given the potential for tax reforms such as a repeal of the
Affordable Care Act, municipal bonds "are not extremely
appetizing," Barclays analysts said in a research note on
"Munis can have some upside near-term," they said, citing
stabilizing Treasury yields and light dealer balance sheets, but
"we think it is likely to be limited."
(Reporting by Nick Brown and Hilary Russ in New York; Editing
by Lisa Von Ahn)