The Bond Buyer articles from February 2005

The Bond Buyer archives from February 2005

The Digest.
February 1, 2005... As the municipal bond market began real-time price reporting, bond prices finished little changed but some blocks got aggressive bids because participants continued to search for paper where they could park their money amid a lack of supply....

Issuers Sold $22.37B Last Month: Second-Biggest January on Record.
February 1, 2005... Municipal bond issuance began 2005 with a bang as issuers sold $22.37 billion through 724 issues, a 7.6% increase from January 2004, when borrowers tapped the market for $20.79 billion through 850 issues, according to figures from Thomson...

West Virginia Lawmakers Approve $8.5B for Pensions, Workers' Comp.
February 1, 2005... The West Virginia Legislature overwhelmingly approved an ambitious debt package over the weekend that may eventually lead to the issuance of up to $8.5 billion of bonds to help finance unfunded liabilities in the state's workers' compensation...

Real Time Becomes Reality: Market Greets New System for Trade Reporting.
February 1, 2005... In what was lauded as a "historic moment" by Securities and Exchange Commission chairman William Donaldson, the municipal market's launch of real-time trade reporting yesterday was greeted by overwhelming interest from investors and other...

News In Brief: Personal Income, Spending Up in Dec.
February 1, 2005... Personal income increased a record 3.7% in December, while personal consumption expenditures rose 0.8%, the Commerce Department reported yesterday. Personal income rose by $360.9 billion to about $10.18 trillion, after an upwardly revised...

News In Brief: New Home Sales Rise to 1.098M Rate.
February 1, 2005... Sales of new, single-family homes in the U.S. rose 0.1% to a 1.098 million seasonally adjusted annual rate in December, according to data released by the Commerce Department yesterday. The rise in new home sales followed November's revised...

News In Brief: Chicago PMI Gains To 62.4 in Jan.
February 1, 2005... The Chicago Purchasing Manager's Business Barometer rose to 62.4 in January from a 61.9 in December, the 20th straight month of expansion as defined by a reading above 50.0, the Purchasing Management Association of Chicago said yesterday. ...

News In Brief: NAPM-NY BCI Jumps To 331.8 in Jan.
February 1, 2005... The New York Business Conditions Index in the National Association of Purchasing Management-New York's Report on Business posted a monthly gain in November, the seventeenth straight monthly rise in the index, and again a record high. The...

News In Brief: Treasury Sees $147B Of 1Q Borrowing.
February 1, 2005... The Treasury Department announced yesterday that it expects to borrow $147 billion in marketable debt during the first quarter of 2005 and to have a cash balance of $10 billion on March 31. The latest borrowing plans are unchanged from the...

News In Brief: Weekly T-Bills Go At 2.475%, 2.710%.
February 1, 2005... Tender rates for the Treasury's latest 91-day and 182-day discount bills were higher yesterday, as the three-months incurred a 2.475% high rate, up from 2.320% last week and as the six-months incurred a 2.710% high rate, up from 2.610% last...

News In Brief: Treasury to Raise New Cash With 4-Weeks.
February 1, 2005... The Treasury Department said yesterday it will sell $12 billion of four-week discount bills today. The four-week, or 28-day, bills will raise $2 billion new cash by auctioning $12 billion to refund $10 billion of maturing bills. ...

Monday's Market: Municipals Finish Little Changed Amid Thin Supply, Real-Time Start.
February 1, 2005... As the municipal bond market began real-time price reporting, bond prices finished little changed but some blocks got aggressive bids because participants continued to search for paper where they could park their money amid a lack of supply....

Electronic Market-Maker Doubles CBOT's Futures Contract.
February 1, 2005... Open interest in the 10-year municipal note index futures contract grew to 3,455 contracts on Friday, more than doubling since the introduction of an electronic market-maker at the beginning of the year, the Chicago Board of Trade reported. ...

Philadelphia Jury Stymied on Deliberations.
February 1, 2005... Jurors told a U.S. judge yesterday that they were having trouble reaching a verdict in the case of a banker charged in connection with the Philadelphia pay-to-play investigation. However, U.S. District Court Judge Michael Baylson sent the...

Puerto Rico Development Bank Board OKs New President.
February 1, 2005... The board of directors of the Government Development Bank of Puerto Rico yesterday approved William Lockwood as the bank's new president. Lockwood has been managing director of Lockwood Financial Advisers since 1993 and of Generans Life...

Reno Hospital in Market With First Leg of Swap.
February 1, 2005... Reno, Nev., expects to price today the first two tranches of a three part, $100 million revenue bond issue for Washoe Medical Center that will include a combination of fixed- and variable-rate debt as well as a forward swap. Though the...

Fitch Upgrades Pittsburgh to BBB,Citing Approval of 2005 Budget.
February 1, 2005... Fitch Ratings upgraded Pittsburgh's debt to an investment-grade BBB from BB yesterday largely because the City Council last month approved the 2005 budget for the long-struggling city. The upgrade affects about $876 million of outstanding...

Disclosure: FSA: Stephens Case Could Adversely Impact Muni Insurers.
February 1, 2005... Warning that the outcome of the case will impact the bond insurance industry overall, Financial Security Assurance Inc. has asked a federal appeals court to overturn a lower court's dismissal of the securities fraud and other charges it filed...

High-Yield Focus: Real Time Has Market Eying Risks, Rewards.
February 1, 2005... With the beginning of real-time reporting yesterday, which requires price disclosure within 15 minutes of each trade, many underwriters and dealers are closely watching the risk-to-reward ratio in the municipal high-yield sector and are...

The Trading Floor: ACA Taps Secondary Market Director.
February 1, 2005... ACA Capital last week appointed Sal Musco as director of secondary municipal markets. "With the new infusion of capital, ACA has doubled its capacity in the secondary market," Musco said. Musco, who reports to head of regional sales Steve...

The Trading Floor: Radian Makes Hire In Structured Products.
February 1, 2005... Radian Asset Assurance last week hired Mark Mylon as senior vice president and executive managing director of its structured products group. Mylon will manage asset-backed securities and other structured transactions, as well as develop...

Competitive Bond Offerings.
February 1, 2005... Letter F next to the issuer's name signifies the Official Notice of Sale is available on the internet! Go to www.bondbuyer.com ISSUER ST DESCRIPTION AMOUNT ($000s) TIME OF SALE FINANCIAL ADVISER LEGAL OPINION MATURING...

Competitive Note Offerings.
February 1, 2005... ISSUER ST DESCRIPTION AMOUNT($000s) TIME OF SALE FINANCIAL ADVISER LEGAL OPINION MATURING INSURER MDY'S S&P FITCH BANK-QUAL. LATEST DETAILS Tuesday, February 1 Old Rochester...

Negotiated Bond Offerings.
February 1, 2005... Tentative dates for negotiated sales of $5 million or more. ISSUER ST DESCRIPTION AMOUNT ($000s) LEAD MANAGER FINANCIAL ADVISER INSURER MDY'S S&P FITCH FIRST APPEARED Week Of January 31 Greater...

Results of Negotiated Sales.
February 1, 2005... ALABAMA Alabama Board of Education Jan 12, 2005 $2,075,000 Revenue Bonds (Central Alabama Community Colleg), Series 2005 (Ambac Insured) (book entry). Dated Jan 1, 2005. Due Jun 1, 2006 to 2025. First coupon Jun 1,...

Results of Competitive Sales.
February 1, 2005... COLORADO Commerce City Jan 31, 2005 $17,500,000 Sales and Use Tax Revenue Bonds Series 2005 (Ambac insured) (book entry). Dated Feb 10, 2005. Due Aug 1, 2007 to 2034. Callable Aug 1, 2015 at par. Winning bid:...

Deal in Focus: North Texas Agency Plans $316M for Toll Road Extension.
February 1, 2005... The Dallas-based North Texas Tollway Authority will go to market either later this month or early in March with approximately $316 million of variable-rate toll revenue bonds. "Proceeds from the issue will allow the North Texas Tollway...

ARIZONA: Phoenix Hotel Design.
February 1, 2005... The Downtown Phoenix Hotel Corp.'s board signed a $10.1 million contract late last week with a Miami architecture firm for design of a city-owned hotel. Arquitectonica was selected in November to design the downtown hotel, but negotiations...

ARIZONA: FTA to Pay.
February 1, 2005... The federal government formally committed to the Valley Metro light-rail system last week with a funding grant that will pay nearly half of the construction costs of the 20-mile starter line. The Federal Transit Administration is...

ARKANSAS: Razorback Revs.
February 1, 2005... The University of Arkansas Board of Trustees last week approved an $88.5 million revenue bond issue for the university system's flagship campus in Fayetteville. Bond proceeds will finance three construction projects and refund debt issued...

ARKANSAS: Highway Appointment.
February 1, 2005... Gov. Mike Huckabee last week appointed Mississippi County farmer John Ed Regenold to the five-member Arkansas Highway Commission. Regenold is chairman of the Armorel Planting Co. The appointment will last 10 years. It comes as Huckabee asks...

ARKANSAS: Jail Tax Rejected.
February 1, 2005... Perry County voters last week rejected a 1% sales and use tax. Three-quarters of the revenue collected would have backed bonds to finance a new jail. The remaining one quarter would have been used to fund operations and maintenance of a...

ARKANSAS: Surcharge Sunset?
February 1, 2005... The House Committee on Revenue and Taxation voted last week to push forward a Senate bill that would eliminate a 3% income tax surcharge that Arkansans have been paying for two years while the state worked to overcome the effects of the...

ARKANSAS: Billion-Dollar Sponsor.
February 1, 2005... State Sen. Bobby Glover, D-Carlisle, last week agreed to sponsor legislation asking for a $1 billion highway debt authorization. Glover will carry the bill on behalf of Gov. Mike Huckabee, who last month unveiled the highway bond proposal....

OKLAHOMA: Oklahoma City Squeeze.
February 1, 2005... Revenue is up in Oklahoma City, but not enough to avoid another round of cuts in the city's budget. Oklahoma City manager Jim Couch told all municipal departments to cut their fiscal 2006 budgets by 1.5% as city officials deal with a...

TEXAS: Continental Concessions.
February 1, 2005... Continental Airlines pilots last week submitted a concession worth $122 million to the airline's management, but also said they wanted guarantees that both their jobs and pensions would be protected in a new contract. The pilots union...

Florida Democrat Running for Governor.
February 1, 2005... Sen. Rod Smith, D-Gainesville, entered the 2006 race for governor in Florida yesterday, joining seven other candidates for the office. Smith, 55, was first elected to the Florida Senate in 2000 and reelected in 2002. He was state attorney...

LARGEST ISSUES: January 2005.
February 1, 2005... Amount Issuer Date $1,213.1 New Jersey Transportation Trust Fund Authority, highways Jan 6 700.0 New Jersey Economic Development Authority, schools Jan 13 650.0 Louisiana (State), GOs (ref) Jan 13 561.0 New York State...

LONG-TERM BONDS: January.
February 1, 2005... 2005 2004 Volume No. of Volume No. of Pct. ($000s) Issues ($000s) Issues Chg TOTAL $22,368,000 724 $20,789,200 850 +7.6 % Development 465,100 14 501,900 13 -7.3 Education 7,789,900 311 8,147,700 336 -4.4 Electric...

BOND SALES BY STATE: January.
February 1, 2005... 2005 2004 Volume Volume Percentage State Rank ($000s) Rank ($000s) Change Alabama 33 $123,600 37 $90,200 +37.0 % Alaska 30 184,200 40 52,300 +252.2 Arizona 11 550,100 20 350,900 +56.8 Arkansas 45 28,200 26...

U.S. Securities Prices.
February 1, 2005... Prices as of 3 p.m. ET. Source: GovPx Inc. Treasury Bills Yesterday's Prev. Day's Yesterday's (in percent of discount) Bid/Offer Bid/Offer Bid Yield 1M -- 2/24/2005 1.995/985 2.065/050 2.025 3M -- 4/28/2005 2.425/420...

Short-Term Tax-Exempt Yields.
February 1, 2005... Jan 31, 2005 Jan 28, 2005 Feb 2, 2004 Selected MIG-1/SP-1+ Notes California Rans 3s (June 05) 2.01 2.03 1.50 Los Angeles Co Trans 3s (June 05) 2.01 2.00 1.90 New Jersey Trans 3s (June 05) 2.05 2.03 n.a. Texas Trans 3s...

Municipal Market Data General Obligation Yields.
February 1, 2005... Aaa Aaa (pure) (ins) Aa A Baa 2006 2.20 2.25 2.24 2.35 2.63 2010 2.82 2.93 2.92 3.10 3.45 2015 3.48 3.60 3.58 3.77 4.16 2020 3.84 3.96 3.94 4.11 4.49 2025 4.14 4.24 4.23 4.39 4.73 2030 4.39 4.49 4.48 4.61 4.91...

Market Indicators.
February 1, 2005... Dollar amounts are in millions Day's 2005 2005 Daily Yesterday Change High Date Low Date Municipal Bond Index 114-20 +1/32 114-20 (1/31) 112-11 (1/4) 40 Average Dollar Price 104.13 +0.04 104.13 (1/31) 102.05 (1/4) ...

New-Issue Balances.
February 1, 2005... (,000 Omitted) * Since initial reoffering + Revised upward since last report Amount Date NEW OFFERINGS Sold Balance $35,000 1/31 New Prague Ind. Sch. Dist. #721, Minn. $34,890 $110 17,500 1/31 Commerce City, Colo. 17,500...

Municipal Market Data Total Returns.
February 1, 2005... Maturities 15 Years and Longer -- Periods Ending January 28, 2005 Previous Month Year Week To Date To Date General obligation (composite) +0.746% +2.894% +2.894% Aaa (pure) +0.714 +2.788 +2.788 Aaa (insured) +0.720...

Municipal Bond Index Update.
February 1, 2005... The list of bonds used to calculate the Municipal Bond Index was not revised after the Jan. 31 pricing. No new bonds qualified for inclusion in the index. As a result, the coefficient remains at 1.0213, the average coupon at 5.02%, the...

Municipal Bond Prices.
February 1, 2005... 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...

Municipal Bond Index.
February 1, 2005... Current Day Previous Day Week Ago Month Ago Year Ago The Bond Buyer Municipal Bond Index 114-20 114-19 114-05 112-21 112-18 Monday, January 31, 2005 Maturity Par Call Dollar Conversion Converted Date Date Price Factor Price 1...

Milwaukee County Voters Likely to Have Say on Pension Deal.
February 1, 2005... The Milwaukee County board is expected to vote this week on whether to hold advisory referendum on County Executive Scott Walker's proposal to sell $261 million of pension obligation bonds to reduce the burden of an unfunded pension liability...

Detroit's Big Water Deal: $880M of New Money to Hit Market This Month.
February 2, 2005... The Detroit Water and Sewerage Department plans to return to the market this month to issue as much as $880 million of new money and refunding bonds that will carry an improved credit outlook from some rating analysts despite concerns about the...

The Digest.
February 2, 2005... The municipal market was firm but little changed yesterday as buyers showed continued demand but tax-exempts received scant direction from Treasuries ahead of the Federal Reserve's interest rate policy decision today. Complete market coverage...

Texas Toll Revenue Borrowing To Proceed Despite Investigation.
February 2, 2005... Officials from the Central Texas Regional Mobility Authority said yesterday that they would "aggressively" pursue a $274 million toll revenue bond sale scheduled for next week in spite of a criminal investigation of the authority's board of...

Bond Referendum Donations a Concern Haines Warns Of IndirectG-37 Abuses.
February 2, 2005... The Securities and Exchange Commission's top municipal securities official yesterday cautioned broker-dealers against circumventing Rule G-37 on political contributions, warning that this could lead federal regulators to revisit the rule and...

News in Brief: Construction Outlays Surge to Record.
February 2, 2005... Spending on construction projects surged in December to a record high as both private and public construction also increased to all-time high levels, Commerce Department figures released yesterday show. Total construction spending soared by...

News in Brief: ISM Index Slips To 56.4 in Jan.
February 2, 2005... The overall economy expanded for the 39th straight month in January, while the manufacturing sector expanded for the twentieth time in as many months, the Institute for Supply Management reported yesterday. According to the ISM's monthly...

News in Brief: Treasury 4-Weeks Go at 2.195% High.
February 2, 2005... The Treasury Department yesterday auctioned $12 billion of four-week bills at a 2.195% high yield, a price of 99.829278. The coupon equivalent was 2.229%. The bid-to-cover ratio was 2.82. Tenders at the high rate were allotted 1.50%....

News in Brief: FY2006 Budget To Seek More for IRS.
February 2, 2005... President Bush's 2006 budget will request an additional $500 million for IRS enforcement activities, a nearly 8% increase in funding over fiscal 2005, according to the Treasury Department. Bush's budget, due to be released Monday, is...

Tuesday's Market: Munis Firm as Participants Prepare For FOMC Interest Rate Decision.
February 2, 2005... The municipal market was firm but little changed yesterday as buyers showed continued demand but tax-exempts received scant direction from Treasuries ahead of the Federal Reserve's interest rate policy decision today. Traders said light...

A Correction.(Correction Notice)
February 2, 2005... Yesterday's story on Reno, Nev.'s $100 million bond sale for the Washoe Medical Center incorrectly reported details of the underwriting team. Raymond James & Associates Inc. and Merrill Lynch & Co. are co-senior managers for the entire $100...

Moody's Affirms Alabama's Aa3, Watches It for Upgrade.
February 2, 2005... On the eve of Alabama Gov. Bob Riley's state of the state address yesterday, Moody's Investors Service affirmed the state's Aa3 credit rating and placed it on watch list for a possible upgrade. "The action reflects the strong legal and...

Mississippi House Speaker Pressured Agency Over Beef Plant, Report Charges.
February 2, 2005... At least one lawmaker allegedly used his influence to get additional state bond proceeds to continue the construction of Mississippi Beef Processors LLC, an economic development project in Oakland that is now in default, said a 90-page report...

Virginia Gov. Warner Says Expected Surplus Has Grown to $1.2B.
February 2, 2005... Virginia Gov. Mark. R. Warner has told legislative leaders that the commonwealth is expected to generate a nearly $1.2 billion surplus in the fiscal 2005-2006 biennium, up from the $918 million surplus forecast in December. "The unusual...

Tennessee Governor Pushes $25B Budget With $358M of Bonds.
February 2, 2005... Tennessee Gov. Phil Bredesen Monday night unveiled a roughly $25 billion budget for fiscal 2006 that includes $358 million of bonds. The recommended debt authorization is about $135 million less than the amount approved for fiscal 2005,...

Tax Regulation: IRS Overhauls Form 8038-T With Eye on Arbitrage Abuses.
February 2, 2005... The Internal Revenue Service has overhauled the form used by issuers of tax-exempt bonds to make arbitrage-related payments, both to make it easier to complete and to help the agency spot potentially abusive transactions. The revised and...

Moody's Raises Essex County, N.J., GOs to Baa1.
February 2, 2005... Moody's Investors Service upgraded its rating on Essex County, N.J.'s general obligation debt to Baa1 from Baa2 and put the county on watch list for possible upgrade in a report released late Monday. The rating upgrade affects about $1.4...

Mutual Funds: Net Outflows in 2004 Sink Tax-Exempt Assets to $327.7B.
February 2, 2005... Municipal bond mutual funds shrank in 2004 with a net outflow of $13.68 billion, making it their third worst year on record, the Investment Company Institute reported. Total assets in municipal bond funds ended the year at $327.7 billion,...

Grady Co., Okla., Jail May Hold Federal Prisoners for Extra Cash.
February 2, 2005... The latest plan by Grady County, Okla., to service the debt on $17.5 million in jail revenue bonds calls for using every available cell to hold prisoners for the federal government in order to generate revenue. The Grady County Industrial...

Iowa Governor Proposes Sale of $800M in Bonds for Business, Jobs.
February 2, 2005... Iowa would sell $800 million of moral obligation bonds over the next few years to promote business development and job creation under Gov. Tom Vilsack's proposed $5 billion fiscal 2006 budget unveiled this week. The state would borrow $400...

Competitive Bond Offerings.
February 2, 2005... Letter F next to the issuer's name signifies the Official Notice of Sale is available on the internet! Go to www.bondbuyer.com ISSUER ST DESCRIPTION AMOUNT ($000s) TIME OF SALE FINANCIAL ADVISER LEGAL OPINION MATURING...

Competitive Note Offerings.
February 2, 2005... ISSUER ST DESCRIPTION AMOUNT($000s) TIME OF SALE FINANCIAL ADVISER LEGAL OPINION MATURING INSURER MDY'S S&P FITCH BANK-QUAL. LATEST DETAILS Wednesday, February 2 Groton CT...

Negotiated Bond Offerings.
February 2, 2005... Tentative dates for negotiated sales of $5 million or more. ISSUER ST DESCRIPTION AMOUNT ($000s) LEAD MANAGER FINANCIAL ADVISER INSURER MDY'S S&P FITCH FIRST APPEARED Week Of January 31 Paradise Vly...

Results of Negotiated Sales.
February 2, 2005... ALABAMA Brewton (City) Jan 11, 2005 $5,600,000 General Obligation Warrants, Series 2005 (XL Capital Insured) (book entry). Dated Jan 1, 2005. Due Dec 1, 2015 to 2024. First coupon Jun 1, 2005. Callable Dec 1,...

Results of Competitive Sales.
February 2, 2005... CALIFORNIA San Diego County Board of Education Feb 1, 2005 $10,990,000 2005 Certificates of Participation (North County Regional Education Center Project) (Ambac insured) (book entry). Dated Feb 15, 2005. Due Feb 1, 2006...

ILLINOIS: Parks Steady.
February 2, 2005... The credit outlooks for the 51 Illinois park districts rated by Moody's Investors Service remain stable with sound financial operations offsetting the weak economy of recent years and property tax caps, according to a new report from the...

ILLINOIS: Build Illinois Bonds.
February 2, 2005... Illinois on Tuesday will competitively sell $75 million of new-money sales-tax backed bonds to help finance already approved capital projects. The bonds are being sold under the Build Illinois program, which taps the state's sales tax as a...

MICHIGAN: UM's Triple-A.
February 2, 2005... Standard & Poor's on Friday raised its rating to AAA from AA-plus on outstanding debt secured by the University of Michigan's general revenues as it prepares to bring about $90 million of new-money and refunding bonds to market. The...

MINNESOTA: HealthEast Raised.
February 2, 2005... Standard & Poor's yesterday upgraded HealthEast Inc. to BB-plus from BB, one step below investment grade. The upgrade impacts $123 million of debt sold in 1997 and 1993 through the St. Paul Housing and Redevelopment Authority, $16 million...

OHIO: Orange Gets Juiced.
February 2, 2005... The Orange School District last week became the first school district in Ohio to get a AAA rating from Standard & Poor's, which raised it from AA-plus. The district, located east of Cleveland, has $26.5 million of general obligation debt...

Jury Finds Carlson Not Guilty in Philly Case.
February 2, 2005... A jury yesterday found Denis Carlson not guilty of making false statements to FBI agents investigating the awarding of bond underwriting by the city of Philadelphia. Jurors deliberated for about four days before reaching the verdict. On...

MBIA Inc. Reports 2004 Operating Income Rose by 46 Cents Per Share.
February 2, 2005... MBIA Inc., the holding company for MBIA Insurance Corp., reported yesterday that operating income rose to $5.25 per share in 2004 from $4.79 per share at the end of 2003. For the quarter, operating income also inched up to $1.34 per share...

Litigation Delays California's Tribal Gambling Securitization.
February 2, 2005... California's plans for an $800 million securitization of revenue from tribal gambling remain in limbo, awaiting the outcome of a slow-moving court case. That case, brought by non-tribal gambling interests, awaits a change-of-venue motion...

U.S. Securities Prices.
February 2, 2005... Prices as of 3 p.m. ET. Source: GovPx Inc. Treasury Bills Yesterday's Prev. Day's Yesterday's (in percent of discount) Bid/Offer Bid/Offer Bid Yield 1M -- 2/24/2005 2.050/ 1.995/985 2.081 3M -- 5/5/2005 2.465/460...

Short-Term Tax-Exempt Yields.
February 2, 2005... Feb 1, 2005 Jan 31, 2005 Feb 3, 2004 Selected MIG-1/SP-1+ Notes California Rans 3s (June 05) 1.99 2.01 1.60 Los Angeles Co Trans 3s (June 05) 1.98 2.01 1.95 New Jersey Trans 3s (June 05) 2.02 2.05 n.a. Texas Trans 3s...