Company News


Municipal

New Issues

8/14/17
$55,000,000
Centinela Valley UHSD
Senior-Manager Serials 2019-2020 Terms 2046 2052

Capital Markets

New Issues

Debt

8/3/2017
$1b - Capital One NA - CoMgr

8/2/2017
$3b - General Motors Co - CoMgr

8/1/2017
$2.5b - Comcast Corp - CoMgr

7/31/2017
$1.5b - Ford Motor Credit - CoMgr

7/27/2017
$22.5b - AT&T Inc. - CoMgr

5/31/2017
$5b - Goldman Sachs - CoMgr

Equity

Insights

CREDIT AND MARKET STRATEGY
MUNICIPAL MARKET WEEKLY

August 14, 2017

Munis Investors vs. Doomsdayers

Last Week:

There are some similarities these days between Muni investors and Doomsdayers. Both seek “safe havens” as the world is gripped by uncertainty, and both know a really good investment when they see one. The Doomsday crowd, of course, believes the world is ending any day now and prefer to invest in hard assets, as in “Bunkers With Granite Countertops”, while Muni Investors, fearing safety of principal, duration risk or both, prefer high-grade Muni bonds for safety of principal and current income. As President Donald “What Does This Button Do” Trump went tit-for-tat with Man-Child Kim in last week’s sandbox scuffle, both Muni Investors and...

Supply

Gross supply of $227 bil. though the end of last week is -14% YoY. We estimate long-term new issue gross supply for 2017 at $368 bil., for a decline of about $60 bil., or -14%, which incorporates $204 bil. of new money bonds and...

Best Market Values: A-rated (10yrs/30yr); AA-rated (10yr)

Credit spreads continue to read generally tight across the board, except for ‘AA’ and ‘A’ rated general market names in 10yrs and ‘A’ rated paper in 30yrs. The A-rated space overall has lagged AA and BBB bonds as investors seek out the relative safety (and lower yields) of high-grades or reach for duration and yield in BBBs. We note that A-rated spreads in 10yrs and 30yrs are both...

Full Weekly Report

Quarterly Review

SAMUEL A. RAMIREZ & COMPANY, INC.
QUARTERLY MACROECONOMIC OUTLOOK
FINANCIAL STRATEGIES GROUP – 2nd QUARTER 2017

Dear Clients,

Please find attached Ramirez & Co.’s Quarterly Macroeconomic Outlook. In our report, we continue to monitor the US economy, global events and the Fed’s outlook on the economy and rates:

  • 1Q17 GDP growth settles at 1.4%.  The Atlanta Fed’s GPDNow and Blue Chip consensus forecast about 2.7% GDP growth for 2Q17.  Economic surprise indicators in the US slide into negative territory, bucking the markets’ optimism.  In Europe, economic surprise indicators rise.
  • The Fed hikes its benchmark rate another 25 bps in June, following similar hikes in March and December. The Fed, the markets, and major banks all agree: one more rate hike in 2017 is expected. Major banks see a flattening of the yield curve as they predict short-term rates rising faster than long-term rates.
  • The drawdown:  the Fed outlines a program to pare down its holdings of Treasuries and MBS.  The latest FOMC minutes show that the draw-down could start as soon as this Fall.

    Members of our Financial Strategies Group, Niso Abuaf, Konstantin Semyonov and Duncan Sinclair, would be happy to discuss further any of the material with you.

    Full Quarterly Report
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