The Bond Buyer articles from July 2003

The Bond Buyer archives from July 2003

NASACT Asks TBMA to Collect Bond Fees From States for GASB.
July 1, 2003... The National Association of State Auditors, Comptrollers, and Treasurers wants members of The Bond Market Association to collect bond fees from state issuers and deposit the fees with a new nonprofit organization created by NASACT so the...

Long-Term Volume Hits Record High: First Half of 2003 Saw $198.2B Sold.
July 1, 2003... Issuers in the long-term municipal bond market sent volume to an unprecedented high in the first six months of 2003. Across the country, borrowers turned to the market to sell a record $198.2 billion of municipal bonds, a 19% increase over...

New York Gets Its Share: Tobacco Pact Gives State, Localities $22.2M.
July 1, 2003... The state of New York and its local governments yesterday received a $22.2 million share of an agreement reached two weeks ago between tobacco companies and 52 states and jurisdictions, resolving several disputes over the payments required by...

The Digest.
July 1, 2003... Underwriters received a total of $225 million in retail orders on $650 million of New York City general obligation refunding bonds at the conclusion of a two-day order period today, while cash bonds were little changed. Complete market coverage...

News In Brief: Mississippi Gov. Taps Counsel as Treasurer.
July 1, 2003... Mississippi Gov. Ronnie Musgrove appointed his chief legal counsel, Peyton Prospere, as interim state treasurer yesterday following the resignation of Marshall Bennett. Prospere, 51, an experienced bond attorney, will serve until January...

News In Brief: Chicago PMI Inches Up in June.
July 1, 2003... The Chicago Purchasing Manager's business barometer climbed to 52.5 in June from 52.2 in May, the National Association of Purchasing Management-Chicago said yesterday. The data is compiled on a seasonally adjusted basis. An index reading...

News In Brief: N.Y.C. BCI Drops To 226.7 in June.
July 1, 2003... Economic conditions in New York City remained "relatively tepid" in June, as the business conditions index in the National Association of Purchasing Management-New York's Report on Business slipped again in June. The BCI slid to 226.7 in...

News In Brief: Weekly T-Bills Go At 0.885%, 0.950%.
July 1, 2003... Tender rates for the Treasury's latest 91-day and 183-day discount bills were higher, as the three-months incurred a 0.885% high rate, up from the previous auction's rate of 0.815% and as the six-months incurred a 0.950% high rate, up from...

News In Brief: Treasury Details 4-Week Bill Auction.
July 1, 2003... The Treasury Department said yesterday it will sell $17 billion of four-week discount bills tomorrow. The four-week bills will pay down $1 billion of maturing bills. Copyright 2003 Thomson Media Inc. All Rights Reserved....

Monday's Market: Munis Unchanged in Light Trading; $225M in Retail for N.Y.C. Refunding.
July 1, 2003... Underwriters received a total of $225 million in retail orders on $650 million of New York City general obligation refunding bonds at the conclusion of a two-day order period yesterday, while cash bonds were little changed. Treasuries rose...

Delayed State Aid Payments Take Some Texas Schools By Surprise.
July 1, 2003... Just as the Texas Legislature was convening yesterday for a special session on redistricting, Comptroller Carole Keeton Strayhorn sent Gov. Rick Perry a letter warning that legislation he recently signed into law could leave many of the...

Raters: Despite Some Problems, Higher Ed's Outlook Is Stable.
July 1, 2003... The outlook for both public and private higher education in the U.S. is generally stable, despite rising debt, cuts in state aid, and a lagging equity market, rating analysts say. As the fiscal year for most colleges and universities comes...

Deal Positions Milwaukee County to Cover Midwest Debt.
July 1, 2003... Milwaukee County would guarantee repayment of $14.5 million of outstanding industrial revenue bonds issued by the city of Milwaukee on behalf of Midwest Airlines under a tentative deal that would free up the financially strapped airline's...

Moody's Drops Detroit Medical Center's Rating to Ba3.
July 1, 2003... Moody's Investors Service last week downgraded the Detroit Medical Center after the hospital released its 2002 audited financial statements showing decreasing liquidity and failure to meet a rate coverage covenant on outstanding bonds. ...

Pennsylvania Agency's 5-Year Plan Released With Official's Disclaimer.
July 1, 2003... For the first time in the Pennsylvania Intergovernmental Cooperation Authority's history, the Philadelphia controller's office has issued a disclaimer on the city's five-year plan, which was approved by PICA last Thursday. Typically, the...

Massachusetts to Enter Fiscal 2004 With a Budget, for a Change.
July 1, 2003... For the first time in seven years, Massachusetts will begin the fiscal year with an operating budget in place. After a great deal of partisan wrangling, Gov. Mitt Romney on Monday afternoon signed into law a $22.1 billion budget for fiscal 2004...

MSRB, Bond Market Association Plan October Compliance Seminar.
July 1, 2003... The Municipal Securities Rulemaking Board and The Bond Market Association plan to hold a compliance seminar Oct. 9 to discuss the board's rules. MSRB executive director Christopher Taylor said yesterday that it's too early to tell what...

Rankings: Citigroup, UBS Financial Stay on Top in 1st Half.
July 1, 2003... Citigroup Global Markets Inc. and UBS Financial Services continue to dominate among managing underwriters in the long-term municipal bond market, fortifying the two top senior manager positions they held at the end of last year. Citigroup...

Trends in the Region: As Priorities Shift, Big County Jails Are Holding the Short End.
July 1, 2003... Handcuffed by worsening budget constrictions, sheriffs departments in urban counties throughout the Southwest are struggling to cope with growing inmate populations in the face of public reluctance to boost staffing for new or expanded jails...

ARIZONA: More Maintenance.
July 1, 2003... Gilbert school board members last week approved a $249 million budget that provides an 8% increase in outlays for maintenance and operations. Covering those costs for the coming fiscal year was eased by a 6% budget override approved by voters...

COLORADO: Leaseback to School.
July 1, 2003... State Treasurer Mike Coffman and officials from the financially troubled St. Vrain Valley School District last week signed an agreement for the sale and leaseback of St. Vrain's Educational Service Center. The agreement marks the first...

NEW MEXICO: Happy Returns.
July 1, 2003... The state's major financial portfolio -- including both the Land Grant Permanent Fund and Severance Tax Permanent Fund -- has generated investment returns of $1.2 billion since Jan. 1, an increase of more than 12%, officials announced recently....

NEW MEXICO: Against the Flow.
July 1, 2003... Facing the loss of control over the city's water department under a new state law, the Albuquerque City Council last week approved a resolution to go to court to protect its right to set rates. The resolution declares that a joint-powers...

OKLAHOMA: No Bass Pro Disclosure.
July 1, 2003... A private retailer receiving $17 million in taxpayer-supported financing for a new store does not have to disclose its financial records to the public, the state Supreme Court ruled last month. Oklahoma City refused to disclose Bass Pro...

TEXAS: Poor Morales.
July 1, 2003... Former two-term Texas Attorney General Dan Morales will remain in jail until October after U.S. District Judge Sam Sparks of Austin revoked his bond on Thursday, saying he believes Morales will commit financial fraud if allowed to remain free....

TEXAS: Metro Rail Options.
July 1, 2003... Officials from the Harris County Metropolitan Transit Authority last week unveiled a new mass transit plan for the Houston area that would include the agency's first-ever debt issuance. Metro is in the midst of public hearings in which...

NEW-ISSUE VOLUME NOTES.
July 1, 2003... The new-issue volume tables are based on information compiled by The Bond Buyer from Thomson Financial's data base on Monday, June 30, 2003. All figures are preliminary and subject to revision. Long-term bonds have final stated maturities...

LONG-TERM BONDS: January-June.
July 1, 2003... 2003 2002 Volume No. of Volume No. of Pct. ($000s) Issues ($000s) Issues Chg TOTAL $198,198,900 7,224 $166,557,900 7,161 +19.0 % January 26,621,200 943 21,792,100 954...

LARGEST ISSUES: June 2003.
July 1, 2003... Amount Issuer Date $10,000.0 Illinois (State), pension GOs (TAX) Jun 5 2,093.2 New York Tobacco Settlement Finance Corp. Jun 12 1,718.6 California (State), GOs Jun 20 1,529.0 New...

LONG-TERM BONDS: June.
July 1, 2003... 2003 2002 Volume No. of Volume No. of Pct. ($000s) Issues ($000s) Issues Chg TOTAL $44,594,200 1,363 $38,499,300 1,404 +15.8 % Development 989,800 45 483,000 46...

BOND SALES BY STATE: January-June.
July 1, 2003... 2003 2002 State Rank Volume Rank Volume Pct Chg Alabama 30 $1,430,800 29 $1,679,000 -14.8 % Alaska 39 685,200 35 1,060,700 -35.4 Arizona 15 3,689,700 9 4,344,200 -15.1...

Top Disclosure Counsel: First Half 2003.
July 1, 2003... Rank Firm Amount Issues 1 Sidley Austin Brown & Wood $5,789.5 8 2 Orrick, Herrington & Sutcliffe LLP 5,428.8 14 3 Hawkins Delafield & Wood 5,301.2 16 4 Clifford Chance Rogers &...

Top Underwriter's Counsel: First Half 2003.
July 1, 2003... Rank Firm Amount Issues 1 Hawkins Delafield & Wood $11,481.6 63 2 Burke Burns & Pinelli Ltd. 10,456.0 5 3 Winston & Strawn 10,110.0 4 4 Orrick, Herrington & Sutcliffe LLP ...

Top Bond Counsel: First Half 2003.
July 1, 2003... Rank Firm Amount Issues 1 Orrick, Herrington & Sutcliffe LLP $23,346.8 244 2 Hawkins Delafield & Wood 14,182.9 193 3 Sidley Austin Brown & Wood 12,042.8 64 4 Pugh, Jones & Johnson...

Top Financial Advisers: First Half 2003.
July 1, 2003... Rank Firm Amount Issues 1 Public Resources Advisory Group $20,143.6 69 2 Public Financial Management Inc. 19,111.2 394 3 Kirkpatrick, Pettis, Smith, Polian Inc. 10,949.0 21 4 ...

Top Negotiated Managers: First Half 2003.
July 1, 2003... Rank Firm Amount Issues 1 Citigroup $22,575.7 223 2 UBS Financial Services Inc. 20,749.0 251 3 Bear Stearns & Co. 13,950.0 83 4 Morgan Stanley 13,065.0 96 5 Lehman...

Top Senior Managers: First Half 2003.
July 1, 2003... Rank Firm Amount Issues 1 Citigroup $27,215.1 374 2 UBS Financial Services Inc. 23,774.9 418 3 Merrill Lynch & Co. 19,683.0 148 4 Morgan Stanley 16,693.7 167 5 Bear...

Top Competitive Managers: First Half 2003.
July 1, 2003... Rank Firm Amount Issues 1 Merrill Lynch & Co. $10,799.0 83 2 Citigroup 4,639.4 151 3 Morgan Stanley 3,628.7 71 4 UBS Financial Services Inc. 3,025.9 167 5 Lehman...

Top Small-Issue Managers: First Half 2003.
July 1, 2003... Rank Firm Amount Issues 1 RBC Dain Rauscher Inc. $1,081.8 212 2 Morgan Keegan & Co. 695.5 156 3 U.S. Bancorp Piper Jaffray Inc. 612.5 157 4 UBS Financial Services Inc. 566.3 ...

Top Issuers: First Half 2003.
July 1, 2003... Rank Issuer Amount Issues 1 Illinois (State) $10,460.0 2 2 California (State) 6,068.6 4 3 New York State Dormitory Authority 3,204.3 19 4 Golden State Tobacco Securitization Corp.,...

Top Bond Insurers: First Half 2003.
July 1, 2003... Rank Firm Amount Issues 1 MBIA Insurance Corp. $37,716.7 939 2 Financial Security Assurance 30,968.3 1,007 3 Ambac Assurance Corp. 23,813.1 660 4 Financial Guaranty Insurance Co....

Top Trustee Banks: First Half 2003.
July 1, 2003... (by Dollar Amount) Rank Bank Amount Issues 1 Bank of New York $27,114.4 348 2 US Bank 15,652.0 365 3 Wells Fargo Bank 11,115.5 208 4 Wachovia Bank 8,596.2 150 ...

Top Trustee Banks: First Half 2002.
July 1, 2003... (by Number of Issues) Rank Bank Issues Amount 1 US Bank 365 $15,652.0 2 Bank of New York 348 27,114.4 3 Wells Fargo Bank 208 11,115.5 4 Wachovia Bank 150 8,596.2 ...

U.S. Securities Prices.
July 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 -- 7/24/2003 0.785/765 0.775/ 0.798 3M --...

Market Indicators.
July 1, 2003... Dollar amounts are in millions Day's 2003 2003 Daily Yesterday Change High Date Low Date Municipal Bond Index 113-02 +2/32 115-28 (6/13) 107-26 (1/9) 40 Average Dollar Price 103.12...

Short-Term Tax-Exempt Yields.
July 1, 2003... Jun 30, 2003 Jun 27, 2003 Jul 1, 2002 Selected MIG-1/SP-1+ Notes California Raws Ser A 2s (MIG-1) (June 04) 1.15 1.12 n.a. Los Angeles Co Trans 2s (June 04) 0.83 0.87 1.50 Texas Trans 2 3/4s (Aug 03) 0.88...

Municipal Market Data General Obligation Yields.
July 1, 2003... Aaa Aaa (pure) (ins) Aa A Baa 2004 0.85 0.87 0.88 1.11 1.43 2008 2.17 2.28 2.27 2.67 3.19 2013 3.23 3.36 3.34 3.81 4.29 2018 3.91 4.04 4.01 4.39 4.86...

Municipal Market Data Total Returns.
July 1, 2003... Maturities 15 Years and Longer -- Periods Ending June 27, 2003 Previous Month Year Week To Date To Date General obligation (composite) -1.053% -2.518% +5.518% Aaa (pure) -1.015 -1.827 +6.577 ...

New-Issue Balances.
July 1, 2003... (,000 Omitted) * Since initial reoffering + Revised upward since last report Amount Date NEW OFFERINGS Sold Balance $35,000 6/30 Virginia Hsg. Dev. Auth. $20,415 $14,585 11,755 6/30 ...

Reoffering Yields.
July 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 6/17 4.1 Acacia Park CSO Drainage Dist., Mich. 1.00 1.90 2.85 ... ... ...

Municipal Bond Prices.
July 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...

Municipal Bond Index.
July 1, 2003... Yesterday Previous Day Week Ago The Bond Buyer Municipal Bond Index 113-02 113-00 113-25 Monday, June 30, 2003 Maturity Par Call Dollar Conversion Converted Date Date Price Factor Price...

Municipal Bond Index Update.
July 1, 2003... The list of bonds used to calculate the Municipal Bond Index was revised after the June 30 pricing. The new coefficient is 1.0235. It was derived by dividing the June 30 index (113.055604) by the average converted price of the new set of...

Silicon Valley Transit Agency Eyes Bonding Against Future Sales Tax Revenues.
July 1, 2003... The Santa Clara Valley Transportation Authority is weighing whether it can legally sell bonds that are backed by future sales tax revenues in order to pay current operating costs and avoid a reduction in bus and light-rail service in...

Competitive Bond Offerings.
July 1, 2003... 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.
July 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 Tuesday, July 1 F Los Angeles...

Negotiated Bond Offerings.
July 1, 2003... Tentative dates for negotiated sales of $1 million or more. Please fax all pricing & award Information to 212-989-8442. Week Of June 30 Mesa AZ Subordinate Lien 14,730 RBC Dain Rauscher Peacock Hislop -- -- --...

Negotiated Note Offerings.
July 1, 2003... ISSUER ST DESCRIPTION AMOUNT ($000s) LEAD MANAGER INSURER MDY'S S&P FITCH FIRST APPEARED Week Of June 30 CSUCI Fin Auth CA Rev 11,000 Citigroup -- -- -- -- -- Jun 27 ...

Results of Negotiated Sales.
July 1, 2003... CALIFORNIA Oceanside Community Development Commission Jun 26, 2003 $7,740,000 Downtown Redevelopment Project 2003 Refunding Tax Allocation Bonds (FSA Insured) (book entry). Dated Jul 23, 2003. Due Sep 1, 2004 to 2018....

Results of Competitive Sales.
July 1, 2003... ARKANSAS Texarkana School District No. 7 of Miller County Jun 30, 2003 $16,310,000 Refunding and Construction Bonds, Series B (Ambac insured) (book entry). Dated Jul 15, 2003. Due Feb 1, 2004 to 2030. Callable Aug...

Gov. Davis Extends Hiring Freeze To Trim $250 Million From Deficit.
July 2, 2003... California Gov. Gray Davis yesterday extended a state hiring freeze and said he will not fill vacant state jobs in order to save $250 million as the state faces a $38 billion budget deficit. The governor also expressed optimism that a...

Issuer Settles With IRS Over Suspect Deal: Investment Provider Payment at Issue.
July 2, 2003... A nonprofit economic development organization in Oklahoma yesterday announced that it and its bond counsel have entered into a closing agreement with the Internal Revenue Service to prevent the IRS from declaring taxable a $100 million...

The Digest.
July 2, 2003... New York City, the New York State Dormitory Authority, and Frisco, Tex., brought to market more than $800 million in new loans yesterday while cash bond yields were little changed. Complete market coverage by Nicholas Chesla and Anastasija...

Wisconsin GO Threat?: Tax Freeze Could Limit Local Issuance.
July 2, 2003... If Wisconsin Gov. Jim Doyle signs into law a three-year property tax freeze the Legislature included in its version of the fiscal 2004-2005 biennial budget, local governments could lose the ability to issue general obligation bonds without a...

Tuesday's Market: N.Y.C., N.Y. Dorm, and Frisco, Tex., Bring Over $800 Million in New Deals.
July 2, 2003... New York City, the New York State Dormitory Authority, and Frisco, Tex., brought to market more than $800 million in new loans yesterday while cash bond yields were little changed. Treasuries slid mostly into negative terrain, giving up...

News In Brief: ISM June Index 49.8 After 49.4 in May.
July 2, 2003... The overall economy expanded for the 20th straight month in June, while the manufacturing sector contracted for the fourth straight time, the Institute for Supply Management reported yesterday. According to the institute's monthly report on...

News In Brief: Construction Outlays Skidded 1.7% in May.
July 2, 2003... Construction spending fell 1.7% in May, marking the third consecutive month it dropped, but spending is still above last year's level, Commerce Department figures released yesterday show. Total construction spending dropped to $869.8...

News In Brief: S&P Downgrades RJ Reynolds Rating.
July 2, 2003... Citing a weakened tobacco market, Standard & Poor's Monday lowered its corporate rating for RJ Reynolds Tobacco Holdings Inc. senior unsecured debt to BB-plus from BBB-minus. The move follows similar rating actions by Moody's Investors...

News In Brief: Treasury 4-Weeks Go at 0.860% High.
July 2, 2003... The Treasury Department yesterday auctioned $17 billion of four-week bills at a 0.860% high yield, a price of 99.933. The coupon equivalent was 0.876%. The bid-to-cover ratio was 2.47. Tenders at the high rate were allotted 61.06%. The...

A Correction.(Correction Notice)
July 2, 2003... Moody's Investors Service assigned a stable outlook for the Detroit Medical Center in May 2002. In April 2003, the agency downgraded the credit to Ba1 from Baa3 and assigned a negative outlook. A story yesterday on a Moody's further downgrade...

West Virginia Lawmakers Go Back To Work on $200M Grant Plans.
July 2, 2003... After a two-week recess, the West Virginia Legislature resumed its special session this week and came to a decision on more than $200 million worth of grants awarded by the Economic Development Grant Committee last year. The proposed...

California Board Weighs Audit Findings.
July 2, 2003... A California board that allocates state funds to public schools may announce sanctions today against a Riverside County school district for falsifying records to gain an unfair advantage in qualifying for millions of state aid for...

Moody's Displays Lower Confidence in 5 Charter Schools.
July 2, 2003... Five charter schools across the country have received a negative outlook or have been placed on watch list for possible downgrade by Moody's Investors Service over the past two months as part of the rating agency's annual surveillance report...

North Carolina Governor Signs $14.8B Budget in Time for Start of Fiscal Year.
July 2, 2003... North Carolina Gov. Mike Easley on Monday signed into law a $14.8 billion biennial budget just in time for the start of the fiscal year yesterday. Things came down to the wire in the legislature as lawmakers haggled over raising taxes or...

Nevada Gov. Guinn Files Lawsuit Over Budget Battle.
July 2, 2003... In the absence of a state budget near the close of a second special session, Nevada Gov. Kenny Guinn yesterday requested the intervention of the state Supreme Court. Most of the $5 billion budget is signed into law with the exception of...

New Jersey Budget Pact Uses $2B of One-Time Revenue.
July 2, 2003... After weeks of political posturing, New Jersey lawmakers agreed yesterday on a $24 billion fiscal 2004 budget that includes $600 million in new taxes on cigarettes, casinos, billboards, and hotel guests. The spending plan, which relies on about...

Stability, Expansion Aid Connecticut's Bradley Airport.
July 2, 2003... Passenger traffic has stabilized at Bradley International Airport in Hartford, Conn., and the airport's 12-gate expansion has been completed on time. Underlying this positive news, which led Moody's Investors Service to change the outlook on...

Democratic Bill Offers $50 Billion for Transportation.
July 2, 2003... Democrats on the House Transportation and Infrastructure Committee recently introduced legislation designed to stimulate economic growth by providing $50 billion over 10 years for the construction of transportation and infrastructure...

N.Y.C. Competitively Prices $350 Million Synthetic Fixed-Rate Swap.
July 2, 2003... New York City yesterday priced a $350 million synthetic fixed-rate swap in a competitive bid, with Investment Management Advisory Group serving as the city's swap adviser and Wachovia Bank submitting the winning bid of 2.964%. The swap was...

Chicago's Altheimer & Gray Gets a Stay.
July 2, 2003... The partners at Chicago-based Altheimer & Gray this week put off a vote on dissolving the 88-year old law firm, deciding instead to attempt to secure financing to temporarily remain in business during a winding-down period. Altheimer &...

Money Market Funds: Hancock Cuts Fees to Ease Fed Effect on Principal, Returns.
July 2, 2003... John Hancock Funds waived its distribution and service fees for share classes of a taxable money market fund last week in response to the Federal Open Market Committee's quarter point reduction in the federal funds rate, illustrating the costly...

Virginia Agency Aims to Bring $40M of Old Deals Into Pooled Loan Program.
July 2, 2003... The Virginia Resources Authority is gearing up for a $40 million deal later this month to refund outstanding infrastructure revenue bonds that predate the VRA's pooled loan program, the authority's executive director said yesterday. ...

Muni Veteran Schlosberg Leaves First Southwest.
July 2, 2003... First Southwest Co. president and chief operating officer Paul Schlosberg has left the firm after 10 years. Schlosberg, who oversaw such ventures as the Texas Short Term Asset Reserve, a local government investment pool that reached $1...

Nebraska School Districts Sue State Over Funding System.
July 2, 2003... Omaha Public Schools and a group of nearby districts filed suit against Nebraska Monday, seeking to have the state's school funding formula declared unconstitutional. The suit, filed in Douglas County, argues that the system is...