Munis were mixed on Friday, as U.S. Treasuries cheapened and equities ended mixed.
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Tax-exempt issuance for the week of Aug. 17 is projected to be nearly double the same week last year, J.P. Morgan analysts, led by Peter DeGroot, wrote.
Next week will be a “record week for [alternative minimum tax] offerings,” the analysts wrote.
“With AMT spreads somewhat tight to long-term averages, we would not chase spreads tighter, but would overweight on any spread widening,” the analysts wrote, “with the expectation that December-January technicals should create an opportunity for spread compression, provided a supportive rate backdrop.”
Primary to come
Issuance is an estimated $14.69 billion for the week of Aug. 17, with $12.33 billion of negotiated deals on tap and $2.37 billion of competitives, according to LSEG.
The new-issue calendar is led by the Los Angeles Department of Airports with $2.71 billion of senior revenue and refunding bonds, followed by the New York City Transitional Finance Authority with $1.92 billion of future tax secured subordinate bonds: $1.5 billion in the negotiated market and $415 million in the competitive market.
The competitive calendar is led by Colorado with $475 million of education loan program tax and revenue anticipation notes.
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