Company News


Municipal

New Issues

9/25/17
$260,200,000
Alamo Comm Coll Dist
Co-Manager Serials 2018-2042
9/25/17
$373,290,000
Pennsylvania Tpke
Co-Manager Serials 2018-2037 Terms 2042 2047
9/25/17
$1,056,540,000
Texas Water Dev Board
Co-Manager Serials 2018-2052
9/25/17
$380,385,000
New York City Muni Wtr Fin Auth
Co-Manager Serials 2028-2032 Terms 2037 2046
9/25/17
$18,945,000
Texas Water Dev Board
Co-Manager Serials 2018-2032 Terms 2037 2047 Taxable

Capital Markets

New Issues

Debt

9/15/2017
$150m - Wildhorse Resource Devel - CoMgr

9/13/2017
$4.5b - Bank of America - CoMgr

9/12/2017
$1.75b - MetLife - CoMgr
$750m - Prudential Financial - CoMgr
$450m - Radian Group Inc. - CoMgr

9/11/2017
$750m - Virginia Electric Power - CoMgr

Equity

Insights

CREDIT AND MARKET STRATEGY
MUNICIPAL MARKET WEEKLY

September 18, 2017

Munis sold off with Treasuries and equity markets rallied to records as risk-on sentiment returned with a vengeance. Treasury 2s10s bear steepened 2bps as the 2yr bond was off 9 bps, the 5yr bond was off 13 bps, and the 10yr bond was off 11 bps. Munis outperformed only in the 2yr and 10 yr spots, while the 5yr and 30yr MMD spots underperformed. The S&P 500 index hit 2,500 on Friday. Risk-on returned throughout the week, beginning with a lackluster 3yr Treasury auction, downgrad-ed Hurricane Irma threats, and no North Korea missile launch over the weekend. Inflation concerns remained intact following better than expected...

Last week’s Muni new issue calendar of $7.5 bil. led by $800 mil. NYC was generally well received, although the $500 mil. competitive Maryland transaction overwhelmed demand, leaving an overhang of supply for the taking at about +5 bps to +9 bps. Secondary market trading and inventory turnover was slow overall. Further, insurance companies are to date not...

New issue supply this week is light at $4.8 bil. with only ten deals in excess of $100 mil. The negotiated space sees $3.7 bil. of supply led by $850 mil. Univ of CA Regents, $500 mil. NY MTA, and yet another Maryland deal with $240 mil. Rockville. The competitive calendar is led by $178 mil. Cherry Creek School Dist, CO. We see Muni market supply over the next 30 days at...

TIPS breakeven rates and Fed rate hike probabilities for Dec inched up towards week-end as investors turned focus on Fed balance sheet tapering, widely expected to begin this week. Further, Yellen’s quarterly testimony following this week’s 2-day Fed meeting possibly...

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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