The Bond Buyer articles from August 2003

The Bond Buyer archives from August 2003

Muni Issuance Sets July Record.
August 1, 2003... The long-term municipal bond market broke another record last month as issuers aggressively tapped the markets with the largest amount of debt ever sold in July. Around the country, issuers borrowed roughly $29.85 billion via 1,021 issues...

In SEC Settlement, MassPike And Kerasiotes Won't Pay Fines.
August 1, 2003... The Massachusetts Turnpike Authority and its former chairman, James J. Kerasiotes, have settled Securities and Exchange Commission charges that they were negligent in failing to disclose, in connection with three muni bond issues, the cost...

Colorado Water Campaign: Governor's Solicitation Sparks Dealer Concern.
August 1, 2003... Several Colorado investment banks say they are concerned about a solicitation from Gov. Bill Owens for $25,000 donations to support a $2 billion water revenue bond referendum. Owens is stumping for Referendum A, which will appear on the...

Water Agency Sues Corbin Over a Swap: Claims Firm, Former VP Misled District.
August 1, 2003... The West Basin Municipal Water District in Carson, Calif., is suing P. G. Corbin & Co. and one of its former vice presidents, claiming that they wrongly told the district that an interest rate swap it entered into in October 2001 was a...

The Digest.
August 1, 2003... Municipal bond yields rose between 10 and 12 basis points yesterday, ascending for the third time in four days and taking a cue from the declining Treasury market. Complete market coverage by Nicholas Chesla and Anastasija Johnson appears on...

A Correction.(Correction Notice)
August 1, 2003... Morgan Stanley is the lead manager on an upcoming $250 million revenue bond issue for the University of Chicago. The wrong lead underwriter was cited in a story yesterday. Copyright 2003 Thomson Media Inc. All Rights Reserved....

Thursday's Market: Muni Yields Rise 10-12 Basis Points; UBS Prices $480M Pennsylvania Deal.
August 1, 2003... Municipal bond yields rose between 10 and 12 basis points yesterday, ascending for the third time in four days and taking a cue from the declining Treasury market. Governments plunged while equities rose. Treasuries reversed a brief early...

News In Brief: Real GDP Rises 2.4% in 2Q.
August 1, 2003... Real gross domestic product -- the broadest measure of the economy's performance -- rose at a 2.4% seasonally adjusted annual rate in the second quarter, according to advance figures released by the Commerce Department yesterday. The...

News In Brief: Jobless Claims Drop 3,000 to 388,000.
August 1, 2003... First-time applications for state unemployment benefits fell 3,000 to 388,000 in the week ended July 26, according to data released by the Labor Department yesterday. The last time applications were this low was the week ended Feb. 8,...

News In Brief: NAPM-NY BCI Slips To 224.9 in July.
August 1, 2003... Economic conditions in New York City remained contractionary in July, as the business conditions index in the National Association of Purchasing Management New York's Report on Business slipped again, albeit much less than in recent months. ...

News In Brief: Employment Cost Index Up 0.9% in 2Q.
August 1, 2003... Employee compensation costs rose 0.9% in the second quarter of this calendar year, according to Labor Department data released yesterday. The 0.9% increase in the seasonally adjusted employment cost index for all civilian workers followed...

News In Brief: Chicago PMI Gains To 55.9 in July.
August 1, 2003... The Chicago Purchasing Manager's Business Barometer gained to 55.9 in July from 52.5 in June, the third straight month of expansion, the Purchasing Management Association of Chicago said yesterday. The data is compiled on a seasonally...

Arizona Facing More Prisoners, Dwindling Resources.
August 1, 2003... With Arizona's prison population growing at twice the national rate, lawmakers are drafting proposals now for funding decisions that will be made in the legislative session that could be called by mid-September, a task that is particularly...

Talk of Recovery Sparks Rise in 4 of 5 Indexes.
August 1, 2003... In step with the previous week's data, four of The Bond Buyer's five yield indexes moved higher this week as glimpses of an economic recovery surfaced. On Monday, municipal bond yields surged between seven and 10 basis points while...

N.Y.C. Refuses Pataki's Offer to Work to Change MAC Plan.
August 1, 2003... The controversial state legislative plan to refinance New York City's outstanding $2.5 billion Municipal Assistance Corp. debt is not a done deal, Gov. George E. Pataki said yesterday. But city officials say they will continue to move ahead...

Houston-Area Transportation Projects In for a Bumpy Ride From Politicians.
August 1, 2003... A Harris County, Tex., commissioner has asked for a re-evaluation of the county's promise to pony up $250 million for a planned road project north of Houston, while two mayoral candidates are asking to revamp the current board of a city...

Virginia Official: Borrowing Possible for Dulles-Subway Link.
August 1, 2003... A Virginia transportation official acknowledged yesterday that bonds might play a role in financing the $1.5 billion first phase of a project that would link Dulles International Airport to the local subway system but said the state would...

Money Market Funds: Outflows Continue, to the Tune of $2.6 Billion.
August 1, 2003... Investors withdrew cash from tax-free money market funds for the second week in a row, according to data from iMoneyNet Inc. The Westborough, Mass-based fund tracker said about $2.62 billion flowed out of the funds on a net basis for the week...

Mutual Funds: Short-Term Muni Funds a Good Fit in Current Rate Environment.
August 1, 2003... Short-term municipal bond mutual funds continue to show promise, despite industry contraction, according to data released by the Investment Company Institute this week. As interest rates began their ascent in June, short-term funds had a...

Deal in Focus: San Diego School District Readies $350 Million of GOs.
August 1, 2003... San Diego Unified School District is set to sell $350 million in general obligation bonds next week, the largest tranche of a $1.51 billion voter authorization. "It is all new money of an authorization passed in 1998," said Mark Young,...

CALIFORNIA: Governor Who?
August 1, 2003... Contenders who want their names to appear as replacement candidates for governor in the Oct. 7 recall election of Gov. Gray Davis have until Aug. 9 to submit their application, along with a $3,500 processing fee and 65 signatures from their...

CALIFORNIA: Cedars-Sinai Affirmed.
August 1, 2003... Moody's Investors Service affirmed the A3 revenue bond rating for Cedars-Sinai Medical Center's $750 million outstanding debt and kept the outlook at stable Wednesday. "The affirmation is based on Cedars-Sinai's fundamental strengths,...

CALIFORNIA: Police Want New Home.
August 1, 2003... Benicia, a small city northeast of San Francisco, needs a new building for its police department, according to police chief James Trimble, who is pushing for a $14 million bond measure on the November ballot to pay for the project. The...

NEVADA: Improving Health.
August 1, 2003... The University Medical Center's fiscal shape is getting better, according to hospital officials who reported this week that June losses again fell below $1 million, this time to $714,000. "We are very excited about that," according to...

OREGON: Public Works Push.
August 1, 2003... The state's largest ever investment in public works measure, which will use a series of revenue streams to finance $2.5 billion in bonds for bridge and highway improvements, was signed Monday by Gov. Ted Kulongoski. "This is the largest...

WASHINGTON: The Line Up Continues.
August 1, 2003... Another candidate has entered the race for governor. Ron Sims, executive of King County, announced this week that he is running for the state's top job to "change the culture," according to published reports. Sims, a Democrat, joins...

NEW-ISSUE VOLUME NOTES.
August 1, 2003... The new-issue volume tables are based on information compiled by The Bond Buyer from Thomson Financial's data base on Thursday, July 31, 2003. All figures are preliminary and subject to revision. Long-term bonds have final stated...

LONG-TERM BONDS: January-July.
August 1, 2003... 2003 2002 Volume No. of Volume No. of Pct. ($000s) Issues ($000s) Issues Chg TOTAL $230,059,600 8,495 $194,591,300 8,227 +18.2 % January 27,052,000 947 21,790,700 ...

LONG-TERM BONDS: July.
August 1, 2003... 2003 2002 Volume No. of Volume No. of Pct. ($000s) Issues ($000s) Issues Chg TOTAL $29,848,100 1,021 $28,034,700 1,066 +6.5 % Development 152,000 17 893,700 43...

LARGEST ISSUES: July 2003.
August 1, 2003... Amount Issuer Date $2,429.0 New Jersey Turnpike Authority (NM/ref) (TAX/TE) Jul 1 955.9 Los Angeles Department of Water & Power, Calif., water Jul 8 924.8 New Jersey Transportation Trust Fund...

BOND SALES BY STATE: January-July.
August 1, 2003... 2003 2002 State Rank Volume Rank Volume Pct Chg Alabama 30 $1,607,900 29 $1,879,600 -14.5 % Alaska 43 700,300 36 1,223,500 -42.8 Arizona 16 3,973,200 10 4,834,200 -17.8...

Market Indicators.
August 1, 2003... Dollar amounts are in millions Day's 2003 2003 Daily Yesterday Change High Date Low Date Municipal Bond Index 106-25 -14/32 115-28 (6/13) 106-25 (7/31) 40 Average Dollar Price 96.87...

U.S. Securities Prices.
August 1, 2003... Prices as of 3:45 p.m. EST. Source: GovPx Inc. Treasury Bills Yesterday's Prev. Day's Yesterday's (in percent of discount) Bid/Offer Bid/Offer Bid Yield 1M -- 8/28/2003 0.870/870 0.910/ 0.885 3M --...

Short-Term Tax-Exempt Yields.
August 1, 2003... Jul 30, 2003 Jul 30, 2003 Jul 31, 2002 Selected MIG-1/SP-1+ Notes California Raws Ser A 2s (MIG-1) (June 04) 1.64 1.60 1.35 Los Angeles Co Trans 2s (June 04) 0.90 0.85 1.30 Texas Trans 2 3/4s (Aug 03) 0.90...

Municipal Market Data General Obligation Yields.
August 1, 2003... Aaa Aaa (pure) (ins) Aa A Baa 2004 0.95 0.97 0.98 1.21 1.68 2008 2.77 2.88 2.87 3.27 3.78 2013 4.04 4.18 4.15 4.62 5.09 2018 4.55 4.68 4.66 5.08 5.55...

Weekly Yields of 20-Bond GO Index and Treasury Securities.
August 1, 2003... Latest Previous Year 12-Month Week Week Ago High Low 20-Bond Index 5.07 4.83 5.00 5.12 4.21 10-Year Treasury Note 4.47 4.18 4.40 4.47 3.16 30-Year Treasury Bond 5.41 5.11 ...

Bond Buyer Indexes.
August 1, 2003... Average Municipal Bond Yields -- Compiled Weekly 20-Bond 11-Bond 25-Bond 10-Year 30-Year GO Index1 GO Index1 Revenue2 Treasury3 Treasury3 2003 JUL 31 5.07 4.97 5.42 4.47 ...

Credit Calendar.
August 1, 2003... MONDAY, August 4 The Treasury raises $1.216 billion of new cash at its regular auction of 91- and 182-day discount bills by selling $33 billion to refund $31.784 billion of maturing securities and announces the size of its four-week bill...

New-Issue Balances.
August 1, 2003... (,000 Omitted) * Since initial reoffering + Revised upward since last report Amount Date NEW OFFERINGS Sold Balance $600,000 7/30 * New Jersey Econ. Dev. Auth. $600,000 All Sold 43,240 ...

State and Local Government Series Rates.
August 1, 2003... Friday Monday Tuesday Wednesday Thursday July 25 July 28 July 29 July 30 July 31 Overnight* 0.60 0.60 0.64 0.64 0.64 Three Months 0.88 0.88 0.92 0.94 0.93 Six Months 0.93...

Reoffering Yields.
August 1, 2003... NRO - Not Reoffered; S.B. - Sealed Bid; SNA - Sold, Not Available Offer Amount Date ($Mil) RECENT OFFERINGS 1 Year 5 10 15 20 25 30 Aaa -- AAA 7/21 3.6 Prairiland I.S.D., Tex. (PSF gtd.) 1.00 2.55 3.60 ... ... ...

Municipal Bond Index Update.
August 1, 2003... The list of bonds used to calculate the Municipal Bond Index was revised after the July 31 pricing. The new coefficient is 1.0217. It was derived by dividing the July 31 index (106.767347) by the average converted price of the new set of...

Municipal Bond Index.
August 1, 2003... Yesterday Previous Day Week Ago The Bond Buyer Municipal Bond Index 106-25 107-07 109-16 Thursday, July 31, 2003 Maturity Par Call Dollar Conversion Converted Date Date Price Factor ...

Municipal Bond Prices.
August 1, 2003... These 40 Bonds are evaluated and priced daily by Standard & Poor's Securities Evaluations. All figures are rounded to the nearest eighth when reported in this table. "Change in Bid" is rounded after calculation. Dollar Change...

Competitive Bond Offerings.
August 1, 2003... ISSUER ST DESCRIPTION AMOUNT ($000s) TIME OF SALE FINANCIAL ADVISER LEGAL OPINION MATURING INSURER MDY'S S&P FITCH BANK-QUAL. LATEST DETAILS Monday, August 4 + Pasadena CA Wtr Ref Rev ...

Competitive Note Offerings.
August 1, 2003... ISSUER ST DESCRIPTION AMOUNT($000s) TIME OF SALE FINANCIAL ADVISER LEGAL OPINION MATURING INSURER MDY'S S&P FITCH BANK-QUAL. LATEST DETAILS Monday, August 4 Little...

Negotiated Bond Offerings.
August 1, 2003... Tentative dates for negotiated sales of $1 million or more. Please fax all pricing & award Information to 212-989-8442. Friday, August 1 Yavapai Comm Hosp Assoc AZ Rev 60,000 Bear Stearns -- -- -- -- BBB+...

Negotiated Note Offerings.
August 1, 2003... ISSUER ST DESCRIPTION AMOUNT ($000s) LEAD MANAGER INSURER MDY'S S&P FITCH FIRST APPEARED Week Of August 4 Youngstown CSD OH GO Bond Antic 20,000 A.G. Edwards -- -- -- -- -- Today ...

Results of Negotiated Sales.
August 1, 2003... CALIFORNIA Madera Unified School District Jul 31, 2003 $16,200,000 General Obligation Bonds, Election of 2002, Series 2003 (FSA Insured) (book entry). Dated Aug 1, 2003. Due Aug 1, 2004 to 2028. First coupon Feb 1,...

Results of Competitive Sales.
August 1, 2003... ARKANSAS Gentry School District No. 19 of Benton County Jul 31, 2003 $4,305,000 Refunding Bonds (bank qualified) (book entry). Dated Aug 1, 2003. Due Apr 1, 2004 to 2015. Callable Apr 1, 2008 at par. Winning...

Rating Changes.
August 1, 2003... Dollar amounts represent the amount of bonds outstanding in the issue. Rating changes that result from the purchase of the letters of credit or bond insurance for issues in the secondary market are not included. ISSUER AMOUNT ...

Jefferson County, Ala., to Issue Over $1B in Warrants Tomorrow.
August 4, 2003... Jefferson County, Ala., will price $1.052 billion of auction-rate sewer revenue refunding warrants tomorrow in a transaction that involves a multiple- party interest rate swap. The Series 2003-C warrants are being offered as a subseries of...

Natural Gas Prepayment Regs Issued: View Electric, Gas Municipals Equally.
August 4, 2003... The Treasury Department on Friday released final rules for the use of tax- exempt bonds to prepay natural gas contracts that will have a larger impact than expected by giving municipal electric utilities equal footing with municipal gas...

The Digest.
August 4, 2003... Municipal bonds ended mixed Friday in a session marked by lackluster trading and a cautious tone that pervaded the market. Complete market coverage by Nicholas Chesla and Anastasija Johnson appears on page 2 News NONFARM PAYROLLS fell...

Indictments in Calif. District: Justice Department Alleges Extortion.
August 4, 2003... The Justice Department has filed a nine-count indictment against West Basin Municipal Water District board member Tyrone Smith, alleging he extorted $25,000 from M. R. Beal & Co. through one the firm's consultants in return for assuring that...

Friday's Market: Munis Mixed on Lackluster Trading; Treasuries Decline on Payroll Data.
August 4, 2003... Municipal bonds ended mixed Friday in a session marked by lackluster trading and a cautious tone that pervaded the market. Treasuries were mostly lower, having pared early losses mid-morning while stocks declined. Governments declined...

News In Brief: July Payrolls Fall, Unemployment at 6.2%.
August 4, 2003... Nonfarm payrolls fell by 44, 000 even while unemployment slid to 6.2% in July, according to data released by the Labor Department's Bureau of Labor Statistics Friday. Nonfarm payrolls narrowed by a revised 72,000 in June, compared to a...

News In Brief: Income, Spending Climbed 0.3% in June.
August 4, 2003... Personal income and consumption expenditures each rose0.3% in June, the Commerce Department reported Friday. Personal income increased $29.3 billion to slightly less than $9.20 trillion, after an unrevised 0.3% gain in May. Spending...

News In Brief: Construction Outlays Unchanged in June.
August 4, 2003... Construction spending was unchanged in June, but is still above last year's figure, Commerce Department figures released Friday show. Total construction spending was estimated at $864.3 billion, following a revised 0.5% decrease in May,...

News In Brief: Consumer Sentiment Index Rises to 90.9.
August 4, 2003... The University of Michigan's final July index was 90.9, up from the preliminary reading of 90.3 in July, and the final June consumer sentiment index of 89.7, according to market sources. Economists polled by IFR BondData America had...

News In Brief: ISM Index Gains To 51.8 in July.
August 4, 2003... The overall economy expanded for the 21st straight month in June, while the manufacturing sector expanded for the first time in five months, the Institute for Supply Management reported Friday. The ISM index climbed to 51.8 in July from...

D.C. CFO: Refinancing Could Pay Debt Service for New Ballpark.
August 4, 2003... Savings from the refinancing of $524 million in outstanding Washington Convention Center revenue bonds could be used to pay the debt service on $292 million of revenue bonds to finance a proposed ballpark, according to a report last week...

Deal May Keep Hospital in Heart of Oklahoma City.
August 4, 2003... Oklahoma County Commissioners are considering a $200 million revenue bond issue to renovate the St. Anthony Hospital complex and add a medical research park as Oklahoma City officials look for ways to keep the hospital from leaving a...

Chicago Budget Chief: Layoffs Likely to Close Deficit.
August 4, 2003... Layoffs are likely while a property tax increase remains a last resort as Chicago budget officials work over the next two months to close a projected $115.5 million deficit and build up ending cash balances in the 2004 spending plan, budget...

Senate Commerce Committee Passes Bar on Internet-Access Tax by States.
August 4, 2003... The Senate Commerce Committee last week easily approved legislation that would permanently bar states from levying taxes on Internet access and would also prohibit multiple and discriminatory taxes on transactions conducted online. The...

Bond Lawyer David Miller Moves to Kutak.
August 4, 2003... Tax attorney David Miller has joined the Washington office of Kutak Rock LLP, where he will specialize in municipal bond-tax controversies. "I do think that controversy work is a lot of fun." Miller said. "It gives me a chance to be both a...

Senate Energy Package Includes Tradeable Tax Credits.
August 4, 2003... The Senate last week approved an energy package by passing last year's bill and agreeing to make changes when it works out a final package with the House in September, following its month-long recess. The legislation, approved Thursday in...

The Week Ahead: Billion-Dollar Issues From California, Alabama County Lead Slate.
August 4, 2003... Two billion-dollar deals -- one a refunding and the other new money -- will headline the activity in the primary market this week, while a separate, significantly sized utility issue hailing from Puerto Rico will offer investors a chance to buy...

Trends in the Region: D.C. Approves First TIF Project Outside of Downtown.
August 4, 2003... Months after local leaders complained that the District of Columbia's tax increment financing program failed to promote economic development in less- affluent neighborhoods, the city has approved an application for a TIF in a sparsely...

CONNECTICUT: Integrity Police.
August 4, 2003... Following several high-profile federal investigations of abuse by Connecticut officials, chief state's attorney Christopher Morano is creating a Public Integrity Bureau to look into alleged corruption. The bureau will examine all levels of...

DISTRICT OF COLUMBIA: Commuter Tax Suit.
August 4, 2003... The District Council, Mayor Anthony A. Williams, and 18 district residents have launched a lawsuit in federal court aimed at eliminating a congressional prohibition that stops the district from taxing the income of nonresidents who work in the...

MARYLAND: Expanded Housing Sale.
August 4, 2003... The Maryland Community Development Administration will issue around $174 million over the next two months, upping the size of one issue and splitting one deal into two series. The agency, which is part of the state's Department of Housing...

MARYLAND: Multifamily Upgrade.
August 4, 2003... Moody's Investors Service has upgraded to Aa2 from Aa3 the rating on approximately $49.6 million in outstanding parity debt issued under the Montgomery County Housing Opportunities Commission's multifamily housing revenue bond program. ...

NEW YORK: Better Buffalo Bonds.
August 4, 2003... Standard & Poor's has assigned an A-plus rating to a proposed $180 million sale for the Buffalo Public Schools through the Erie County Industrial Development Agency. The rating is higher than one school official recently predicted the deal...

NEW YORK: Federal Gap Filler.
August 4, 2003... The state plans to use $1 billion of the $1.6 billion in federal aid from President Bush's tax-cut package to close an estimated $900 million gap in the budget adopted by the Legislature. However, officials anticipate that major spending cuts...

RHODE ISLAND: Rare College Credit.
August 4, 2003... Providence College's sale of $63.7 million in fixed-rate revenue bonds, which are being issued through the Rhode Island Health & Educational Building Corp. next week, have received an underlying rating of A3 from Moody's Investors Service week....

Connecticut's Operating Budget Awaits Rowland's OK.
August 4, 2003... The Connecticut budget is ready and waiting for Gov. John G. Rowland's signature. Following House approval earlier in the week, the Senate on Thursday approved a two-year $27.5 million fiscal 2004-2005 operating budget that will both raise...

Federal Cash Allows DFW to Set Final Sale in $1.7B Bond Plan.
August 4, 2003... An infusion of expected federal cash and a commitment for more aid will enable Dallas-Fort Worth International Airport to move forward Aug. 19 with the pricing of a $112.6 million variable-rate revenue bond transaction, the last component of a...

Market Indicators.
August 4, 2003... Dollar amounts are in millions Day's 2003 2003 Daily Yesterday Change High Date Low Date Municipal Bond Index 105-27 -30/32 115-28 (6/13) 105-27 (8/1) 40 Average Dollar Price 96.10...

U.S. Securities Prices.
August 4, 2003... Prices as of 3:45 p.m. EST. Source: GovPx Inc. Treasury Bills Yesterday's Prev. Day's Yesterday's (in percent of discount) Bid/Offer Bid/Offer Bid Yield 1M -- 8/28/2003 0.885/865 0.870/870 0.900 3M...

Short-Term Tax-Exempt Yields.
August 4, 2003... Aug 1, 2003 Jul 31, 2003 Aug 2, 2002 Selected MIG-1/SP-1+ Notes California Raws Ser A 2s (MIG-1) (June 04) 1.64 1.64 1.35 Los Angeles Co Trans 2s (June 04) 1.00 0.90 1.45 Texas Trans 2 3/4s (Aug 03) 0.90...

Municipal Market Data General Obligation Yields.
August 4, 2003... Aaa Aaa (pure) (ins) Aa A Baa 2004 1.00 1.04 1.05 1.31 1.78 2008 2.79 2.90 2.89 3.29 3.80 2013 4.04 4.18 4.15 4.62 5.09 2018 4.55 4.68 4.66 5.08 5.55...

Placement Ratio.
August 4, 2003... No. Total Amt. Sales from Placement New New Accts. New Accts. Ratio Accts. ($000s) ($000s) (%) 2003 08/01 25 1,733,826 1,716,728 99.0 07/25 26 2,119,143 2,079,078 98.1...

General Obligation Bond Prices for August 1, 2003.
August 4, 2003... Intermediate Long-Term Bond and Ratings (Moody's/S&P's/Fitch) Dated Cpn &Maturity Yield Price Prev Chg Cpn &Maturity Yield Price Prev Chg STATES California Series 2002 (A2/BBB/A) 10/1/02 4%...