Wednesday, November 17, 2010

First Serious Sign of Trouble in Muni Bond Market; Orange County California Issue Pulled

The Orange County Sanitation District in Southern California has postponed the sale of $160m in Build America bonds. “The bond market has been pretty volatile and flooded with new issues,” said Mike White, the controller.

Translation: They can't get the deal done at a reasonable price, if at all.

Expect further problems, on Tuesday, the yields on triple A 10-year muni-bonds rose 18 bps to 2.93 per cent, the largest one-day rise since October of 2008, according the MMD index.

3 comments:

  1. Ireland, Greece, Spain and Portugal again capture the headlines and yet CA, IL, NJ are rolling over and this is different how??

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  2. @ Bear Hug...with all due respect at least those countries are out protesting the government/bank fraud that got them into that situation, which obviously makes for flashier news.

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  3. Hurray to investors that are now finally demanding a decent rate of return.

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