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Fixedology

  1. We expect strong demand for registered covered bonds once there is passage of US legislation defining the framework for this market in US.
  2. Movement made last week by SEC to allow registration of $12B in covered bonds to be sold by Royal Bank of Canada in the US.
  3. @kellynolandj: Thanks for following our #municipal #market and #fixed #income updates!
  4. #Muni flows In June will be disproportionate amounts for New York ($6-7B) and New Jersey ($3-4B)
  5. May #muni rally in anticipation of big summer flows, but we expect technicals to be supportive nonetheless
  6. $45B in total #muni flows expected in June. Aaverage/month in 2011 was $25B. We expect big months in July, August too.
  7. Major #muni story is June Reinvest.Very large cash flows coming back to investors in June: Maturities: $21 B, Calls: $12 B, Coupons: $12B
  8. @IgnitesButcher: Thanks for following our #municipal #market and #fixed #income updates!
  9. Record interest in yesterday's UTX offering suggests to us investors are seeing US IG credits as safe haven from global sovereign concerns.
  10. @RJPIII: Thanks for following our #municipal #market and #fixed #income updates!
  11. Attractiveness and demand for investment grade credits continue to grow with yesterday's UTX $9.8B offering with over $38B in interest.
  12. Other #muni re-financings: $525mm Louisiana Gas and Fuel Tax AA1/AA ,$350mm D.C. Income Tax AA1/AAA, $300mm L.A. Wstwtr AA2/AA+
  13. $1.8 Bil State of Illinois offered this week: A2/A+ (at spreads 100 to 185 over a generic AAA - wide ... but its refinancing 5%+)
  14. Refinancings make up most of this week's #muni supply, mostly serial 1-15 years and a minor void of issuance 20yrs+
  15. Muni Issuers are starting to meaningfully call in bonds and refinance in today's lower municipal rate environment.
  16. May 1 #muni maturities, coupons, and calls hit this week. We expect plenty of re-investment demand.
  17. Another week of near $1B in positive cash flows for #muni mutual funds, end of a strong April muni market (No tax season effect this year)
  18. @BondDesk - Thanks for the RT
  19. Tax-exempt mutual fund flows positive again last week: YTD average has been +$1 Billion per week
  20. Another quarter of positive muni returns. Common themes: Overall market +1.75% in Q1, long bonds, lower rated bonds were top performers