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Weekly Insights of a Municipal Bond Trader

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A LOOK AHEAD – WEEK OF APRIL 15TH, 2019

COMMENTARY

Performance, Performance……Performance!!!!

Municipals continued their strong performance this past week. Municipal/Treasury ratios continue to grind lower, with the 30-year ratio now at around 90%, down another 2.5% for the week. With only around $7bn in new issuance this past week and roughly $3bln slated for next week, municipal investors continue to search for tax-free paper. Lipper reported inflows for the week at around a billion continuing their record pace of inflows for the year, now at $27bn total. We now wait to see if the new issue calendar will build post the Easter holiday and see if the robust inflow cycle will continue its record pace over the next few weeks.

16th Amendment Advisors Treasury Ratios Performance Through 4-12-19

 

FUND FLOWS

Lipper reported weekly municipal inflows of $956mn. Year to date municipal inflows moved higher to $27.2bn, continuing the best start to a year since the data series began in 1992. YTD high yield funds recorded $5.6bn, intermediate funds $11.7bn, and long-term funds received $13.4bn.

16th Amendment YTD InflowsYear-to-date inflows:

High Yield Municipal $5.2bn

Intermediate Municipal $11.7bn

Long Term Municipal $13.4bn

Municipal ETF’s at $353mn

 

SPOTLIGHT

New Issue Deal of the Week – Cleveland Clinic Health Systems Aa2/AA $450mn New Issue

The deal will be split with $225mn issued through the Martin County Health Facilities Authority of Florida and the other $225mn being issued through the State of Ohio Authority Hospital Revenue Authority. Bond will be structured mostly with long term debt maturities in 2046.

Data Sources: MMD from TM3 and Treasury data from Bloomberg; Lipper data from JP Morgan

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