 |
September 2000 |
| Welcome to the
Monthly Standard & Poor's J.J. Kenny Municipal Market Summary.
In an effort to exceed your expectations, we are offering you an inside
look at the spreads currently affecting municipal bond prices.
This brief composite is intended to further open the doors of communication
and minimize confusion pertaining to bond market valuations. Please
feel free to contact Len
Coviello at (212) 438-4408 to offer your comments as we continue
to "partner" forward with you, our valued customer.
|
|
|
National,
GO, Par Bond,Current
Call
Yield Curve
|
| |
AAA |
Ins |
BBB |
Ins
Zero |
| 5
yr |
4.53 |
4.66 |
5.16 |
4.92 |
| 10
yr |
4.81 |
4.94 |
5.55 |
5.17 |
| 15
yr |
5.27 |
5.40 |
6.02 |
5.64 |
| 20
yr |
5.49 |
5.63 |
6.26 |
5.90 |
| 25
yr |
5.56 |
5.69 |
6.34 |
6.00 |
| 30
yr |
5.59 |
5.73 |
6.37 |
6.01 |
|
|
Yield
Differential From Previous Month
|
| |
AAA |
Ins |
BBB |
| 5
yr |
-0.10 |
-0.13 |
-0.11 |
| 10
yr |
-0.12 |
-0.13 |
-0.12 |
| 15
yr |
-0.12 |
-0.13 |
-0.13 |
| 20
yr |
-0.10 |
-0.12 |
-0.12 |
| 25
yr |
-0.10 |
-0.10 |
-0.11 |
| 30
yr |
-0.10 |
-0.11 |
-0.12 |
|
| Coupon
Spreads for Insureds |
| |
4.50% |
4.75% |
5.00% |
5.25% |
5.375% |
5.50% |
5.75% |
6.00% |
6.25% |
| 30
yr |
23 |
18 |
7 |
3 |
0 |
0 |
2 |
-15 |
-23 |
|
| Key
Financial Indicators |
| US
30 Yr Treas Yield |
5.88% |
| US
10 Yr Treas Yield |
5.79% |
| DJ
Industrial Average |
10650.55 |
| Nasdaq |
3672.40 |
| S
& P 500 |
1436.48 |
| Blue
List Volume |
2.8
Billion |
|
|
PreRefunded
Scale (Mid Year, Rerated)
|
| 2001 |
4.36 |
| 2002 |
4.47 |
| 2003 |
4.54 |
| 2004 |
4.58 |
| 2005 |
4.62 |
| 2006 |
4.67 |
| 2007 |
4.73 |
|
| General
Market Comments:
Increased supply through September has taken its toll on the tax exempt
market. Coupled with a weaker taxable market, municipal yields increased
10 to 12 basis points from 5 yrs and longer. An erratic equity market
and rising oil prices, despite no immediate expectation of Fed intervention,
also did nothing to calm fears of higher rates. |
|
|
High Yield Report:
Mutual fund flows remained neutral for the month of September with
retail accounts continuing to reach for yield. This gave institutional
accounts an opportunity to sell smaller blocks at full offered side prices.
Two new issues of note negotiated in September were the 140mm Las Vegas
Monorail Project NR/NR which had a maximum yield term in 2040 yielding
a 7.75% and the 448mm Kentucky Health which included 120mm nr/nr A- by
Fitch yielding a 6.97%. Both of these issues managed to trade up 5 to
10 basis points from issue, which is a good indication of the continued
improvement in our market.
|
Information
has been obtained from sources believed to be reliable. However, because
of human or mechanical errors by J.J. Kenny Co. Inc., Standard &
Poor's, or their sources, none of these entities guarantees the accuracy,
adequacy,or completeness of the information. Furthermore, they are
not responsible for any omissions or for results obtained from the
use of such information. Copyright © 1999-2000
by J.J. Kenny Co. Inc. |
|