Years of Growth
Credit Rating by
Pennsylvania HFA SFM
Serials 2022-2033 Terms 2036,2041,2046,2050, Terms PAC 2051 Rtl Op Tue 5/18 Pxg Wed 5/19 Aa1 AA+
2022-2041 Rtl Op Tue 5/18 Pxg Wed 5/19 AF AF AF
2022-2028 IOI Tue 5/18 Px Guidance Wed 5/19 AF A+ AF AA
Achieving New Levels of Performance in a Year of Uncertainty and Volatility
A small, fledgling minority-owned firm that opened its doors in 1971 with just a handful of clients is celebrating a half century on Wall Street, growing to 11 regional offices nationwide and serving as lead manager on $40 billion in the last decade.
CREDIT AND MARKET STRATEGY
MUNICIPAL MARKET WEEKLY
May 10, 2021
Markets rallied with major equity indices hitting fresh records following Friday’s abysmal nonfarm payroll report for April. The jobs report was the report’s biggest miss ever and indicated that the US economy isn’t as strong as markets had been inferring with only 266k jobs added in April vs the 1 mil. expected (and revised the March report down to 770k from 916k). The US unemployment rate rose to 6.1% from 6%. The April jobs report indicated acute labor shortages across many industries, renewed debate on the need for fiscal stimulus for workers, and bolstered the case for the Fed to maintain dovish monetary policies; the market weighted probability for a Fed Funds rate increase by year-end 2021 fell to 7% vs the 15% one month ago.
Munis for the second consecutive week gained in sympathy with Treasuries but largely underperformed on a light tax-exempt calendar and a modest deceleration in fund inflows as investors look to pay taxes in mid-May. New issue of $10.2 bil. was manageable and well-received led by issues from WA Hsg Fin Com, PA Cmwlth, and North TX Tollway Auth. About $7.6 bil., or only 74.5% of new issue was tax-exempt.
SAMUEL A. RAMIREZ & COMPANY, INC.
FINANCIAL STRATEGIES GROUP – March 2021
Please find attached Ramirez & Co.’s Macroeconomic Outlook. In our report, we continue to monitor the US economy, global events and the Fed’s outlook on the economy and rates:
• The Covid-19 virus is slowing down and vaccination in the US is picking up. In all likelihood, the economy will follow Covid-19’s and the vaccination’s path
• The FOMC forecasts 2021 GDP to expand by 6.5%, contrasted with its December forecast of a 4.2% increase. And, the Fed forecaststhat real GDP will grow by 3.3% and 2.2% in 2022 and 2023, respectively, all well-above its 1.8% of sustainable longer-run growth
• The Fed funds rate remains unchanged at 0%-0.25%, and will remain as such, through 2023, according to the median FOMC estimate. The longer run Fed funds rate remains at 2.5%.
• For the foreseeable future, the Fed will continue its large-scale asset purchases (LSAP) at least at the current pace –$80 billion per month in Treasury securities and $40 billion per month in mortgage-backed securities
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