Very High Volume of NY Issuance
    by Matthew Tourville
    Monday, December 9, 2013

    As we have been anticipating, many municipal issuers are rushing to market before year end. Nowhere is this more true than in the state of New York. This week, $5.15 billion of supply will come to market, the largest week in history. For the month of December, total New York supply will exceed $8.1 billion. The previous largest month was June of 2012, when $7.7 billion was issued. Coupling this historically high supply with the relentless redemptions from New York municipal bond funds (another $63 million flowed out of New York funds last week), and December is setting up to be a challenging month for municipal bonds in New York. ASA views this as an opportunity to source high quality, highly-liquid municipal paper at favorable prices. In particular, municipal debt that benefits from federal, state, and New York city tax exemption is very desirable to the retail market, providing a strong bid when liquidity is desired. We will be closely monitoring the new deals in New York in the weeks ahead and participating in those deals which are most attractive.

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