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New Issues

6/26/17
$375,000,000
Los Angeles Dwap
Co-Manager Serials 2022-2037 Terms 2042 2047
6/26/17
$200,000,000
Washington Metro Transit
Co-Manager Serials 2020-2034
6/26/17
$1,720,695,000
NY DA PIT
Co-Manager Serials 2018-2040
6/26/17
$500,000,000
Metro Transp Auth Transp Rev
Co-Senior Serials & Terms

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Debt

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

5/15/2017
$700m - The Travelers - CoMgr

5/10/2017
$750m - State Street - CoMgr

5/8/2017
$6.5b - Intel Corp - CoMgr

5/3/2017
$2.25b - Citi - CoMgr

4/28/2017
$3b - PepsiCo - CoMgr

Equity

Insights

CREDIT AND MARKET STRATEGY
MUNICIPAL MARKET WEEKLY

June 19, 2017

Big Week Ahead

Last Week

The Fed on Wed raised its target range for Fed Funds by 25 bp and expects one more rate increase in 2017 along with a slow taper of its balance sheet. The Fed said that while near-term inflation is below expectations, inflation should stabilize around 2% over the medium term. The rates market hasn’t arrived at the same inflation conclusions given weaker than expected economic data, most notably...

Supply

The Muni market remains plagued by an acute supply-demand imbalance, which over the 30 days is estimated at -$32 bil. (see chart below). States driving the market supply deficit include California (-$7.53 bil.), New York (-$4.55 bil.), New Jersey (-$3.44 bil.), Arizona (-$2.39 bil.), and Pennsylvania (-$1.75 bil.). We continue to think gross supply for 2017 will be...

Strategy

The Fed’s slow policy normalization amidst the weaker economic growth should not disrupt economic growth overall, which is sup-portive of credit and the supply-starved Muni market in particular. Economic theory suggests that long-term rates should eventual-ly rise as a result of Fed monetary policy normalization, although rates markets are indicating...

Full Weekly Report

Quarterly Review

SAMUEL A. RAMIREZ & COMPANY, INC.
QUARTERLY MACROECONOMIC OUTLOOK
FINANCIAL STRATEGIES GROUP – 1st 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:

  • US rates and equity markets maintain near year-end levels with the markets showing trepidation, perhaps as a result of the failure to pass the American Health Care Act, while Eurozone 10Y rates move into positive territory.
  • The headline unemployment rate ticks downward to the lower bound of the estimated natural rate and wages show strength with hourly earnings increasing by 2.7% YoY and aggregate hours worked jumping a formidable 1.4% YoY. In keeping with this, the Fed maintains its forecast for three total rate hikes in 2017 and announces the possibility that it will begin tapering its balance sheet as soon as late 2017.
  • The VIX and the bond market MOVE index tick up while political uncertainty ticks down but remains elevated, possibly reflecting uncertainty over the administration’s ability to push through the promised fiscal spending and tax reform programs. On the other hand, GDP growth expectations move up slightly to around 2% plus and survey based production sentiment remains elevated, demonstrating continued optimism.

    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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