The Bond Buyer articles from October 2003

The Bond Buyer archives from October 2003

The Digest.
October 1, 2003... Municipal bond yields fell six to seven basis points and more in spots yesterday, as underwriters brought to market $1.6 billion in major new issues led by a $1.03 billion Massachusetts loan. Complete market coverage by Anastasija Johnson...

In Recall's Shadow, Big Spending Question Goes to California Voters.
October 1, 2003... Almost everybody knows there will be a recall election in California on Oct. 7. What they might not know is that the state's voters will also decide how the state will handle billions of dollars in capital spending in the coming years. ...

Record Debt Sold in First Nine Months: Low Yields Spurred Municipal Issuers.
October 1, 2003... Issuers in the long-term municipal bond market tapped the capital markets for a record amount of debt in the first nine months of this year, capitalizing on low yields in the earlier part of the year and strong investor appetite. Issuance for...

Teaming Up on Taxes: How Conservative Indiana Revamped Its System.
October 1, 2003... In the summer of 2000, Indiana Gov. Frank O'Bannon turned to then-Lieut. Gov. Joseph Kernan and asked him to assemble a team of six men who understood Indiana taxes. Two years had passed since the state Supreme Court declared Indiana's...

News In Brief: Consumer Confidence Index Drops in Aug.
October 1, 2003... The consumer confidence index declined in September, giving back last month's nearly five-point gain, as a result of continuing difficulties in the labor market. The confidence index dipped 4.9 points to 76.8 from an upwardly revised 81.7...

News In Brief: Chicago PMI Down To 51.2 in September.
October 1, 2003... The Chicago Purchasing Manager's Business Barometer slid to a still-expansionary 51.2 in September from 58.9 in August, the fifth straight month of expansion, the Purchasing Management Association of Chicago said yesterday. The data is...

News In Brief: NAPM-NY BCI Rises To 222.2 in Sept.
October 1, 2003... For the first time since November 2002, the New York Business Conditions Index in the National Association of Purchasing Management-New York's Report on Business posted a monthly gain this month. The BCI gained to 222.2 in September from...

News In Brief: Treasury 4-Weeks Go at 0.845% High.
October 1, 2003... The Treasury Department auctioned $13 billion of four-week bills at a 0.845% high yield, a price of 99.934. The coupon equivalent was 0.863%. The bid-to-cover ratio was 2.23. Tenders at the high rate were allotted 64.83%. The median yield...

Tuesday's Market: Yields Fall Six to Seven Basis Points; $1.03B Massachusetts Deal Tops Day.
October 1, 2003... Municipal bond yields fell six to seven basis points and more in spots yesterday, as underwriters brought to market $1.6 billion in major new issues led by a $1.03 billion Massachusetts loan. Treasuries soared, extending earlier gains,...

New Mexico Returns to $400 Million Semiconductor Deal.
October 1, 2003... New Mexico is back in business with a group of entrepreneurs who want to salvage a Philips Semiconductor plant financed with $400 million of industrial revenue bonds issued by Albuquerque. The plant, scheduled to close Oct. 11, would resume...

Delaware Housing Authority to Sell $60 Million Today.
October 1, 2003... The Delaware State Housing Authority plans to sell $60 million in senior single-family mortgage revenue bonds today. The issue will be a private placement with Fannie Mae, and the proceeds will be used to help purchase Ginnie Mae or Fannie...

Wyoming Republican to Introduce Tax-Simplification Bill in Senate.
October 1, 2003... Sen. Michael B. Enzi, R-Wyo., plans to introduce sales-tax simplification legislation later this week that could eventually boost state and local tax revenues by laying the foundation for a new national sales- and use-tax collection system,...

Palm Coast, Fla., Readies Its First Debt Sale in Deal for Water Services.
October 1, 2003... For the first time since it became a city four years ago, Palm Coast, Fla., expects to be in the debt market when it negotiates the pricing next week of $98.7 million of revenue bonds, with most of the proceeds to be used to purchase private...

Legislation: Senate Finance Panel May Vote on Tax-Exempt Provisions.
October 1, 2003... The Senate Finance Committee today is expected to vote on corporate tax legislation that could contain several provisions that would expand the use of tax-exempt bonds. Committee members this week submitted 111 amendments to the bill,...

Transportation: House Panel Members Call for Sales Tax Hike to Back Traffic- Fighting Initiatives.
October 1, 2003... Leaders of a House transportation panel yesterday called on Congress and the White House to support their plan to raise the gas tax roughly eight cents over six years to provide $375 billion for highways and mass transit projects that will help...

Institutional Investors: P&C Industry Made a Healthy $8 Billion in 2d Quarter.
October 1, 2003... The property and casualty insurance industry's consolidated after-tax net income surged to $8 billion in the second quarter after posting a roughly $6.4 billion gain in the first quarter, the Insurance Services Office Inc. and the National...

Mutual Funds: SEC Chairman Tells Senate Banking Committee Sector is 'Top Priority'.
October 1, 2003... Mutual funds are "a top priority" for the Securities and Exchange Commission, its chairman William H. Donaldson told Senate Banking Committee members yesterday, pointing to four or five pages of rules the commission is considering as well as...

Fund Flows: Muni Funds Shed $2.8 Billion, the Biggest Loss in Three Years.
October 1, 2003... Municipal bond mutual funds had a net outflow of $2.821 billion in August, the Investment Company Institute reported Monday. The August outflow marked the second consecutive month the funds' losses exceeded $2 billion, draining them of more...

ILLINOIS: Suburban Alliance.
October 1, 2003... Two south Chicago suburbs last week signed resolutions putting their support behind a plan unveiled recently by four suburbs and U.S. Rep. Jesse Jackson Jr. for a one-runway airport near the southwest suburb of Peotone. The suburbs of...

ILLINOIS: Chicago Contract.
October 1, 2003... The Chicago Public Schools and the Chicago Teachers Union last week said they had reached agreement on a tentative $1 billion, five-year contract that would give teachers an average 4% annual raise and extend the school day. The raises...

IOWA: Wedding Bells?
October 1, 2003... A commission studying the merger of the governments of Polk County and Des Moines voted last week to recommend that the matter go before voters on the November 2004 ballot. Supporters of the merger believe it would streamline government...

MICHIGAN: Downward Adjustment.
October 1, 2003... For the third year in a row, Michigan revenue forecasters plan to meet in an emergency estimating conference to adjust the May forecast downward, as state revenues continue to come in lower than anticipated. The Oct. 14 meeting was moved up...

MICHIGAN: Back to the Blackboard.
October 1, 2003... Detroit Mayor Kwame Kilpatrick planned to host a town meeting tonight to seek local opinions about whether the state should end its oversight of the city's school district. The Michigan Legislature was set last week to vote on la bill that...

OHIO: Cleveland Plan Redux.
October 1, 2003... A group of local business leaders has revived the discussion of a new convention center in Cleveland, about a month after the city andCayuhoga County failed to agree on how to fund the project and then dropped the idea. David Daberko, the...

WISCONSIN: Affirming Agnesian.
October 1, 2003... Moody's Investors Service last week affirmed its rating of A3 on Agnesian Healthcare Inc.'s outstanding $61 million of debt but revised its outlook on the credit to negative from stable. The Fond du Lac-based hospital system's debt was...

Austin Independent School District Joins 'Robin Hood' Suit.
October 1, 2003... The board of trustees for the Austin Independent School District voted unanimously Monday night to join a slate of Texas districts in a lawsuit that alleges the state's school finance formula includes a property-tax cap that constitutes an...

Veteran Trader Widerman Retires From Commerce Capital Markets.
October 1, 2003... William L. Widerman, who served as head of municipal bond trading for Philadelphia-based Commerce Capital Markets retired two weeks ago, capping a 30-year-career in the industry. "He just decided he needed a break from the municipal...

LONG-TERM BONDS: January-September.
October 1, 2003... 2003 2002 Volume No. of Volume No. of Pct. ($000s) Issues ($000s) Issues Chg TOTAL $286,526,500 10,904 $253,762,000 10,585 +12.9 % January 27,023,900 960 21,790,700...

BOND SALES BY STATE: January-September.
October 1, 2003... 2003 2002 State Rank Volume Rank Volume Pct Chg Alabama 21 $4,023,600 26 $3,109,800 +29.4 % Alaska 37 1,319,300 37 1,235,200 +6.8 Arizona 16 4,775,300 10 6,177,800 -22.7...

LONG-TERM BONDS: September.
October 1, 2003... 2003 2002 Volume No. of Volume No. of Pct. ($000s) Issues ($000s) Issues Chg TOTAL $23,696,500 901 $27,583,300 1,102 -14.1 % Development 70,100 7 390,000 43 ...

LARGEST ISSUES: September 2003.
October 1, 2003... Amount Issuer Date 2,572.3 Golden State Tobacco Securitization Corp. Sep 24 776.7 Texas Public Finance Authority (TAX/TE) Sep 10 600.0 Texas Public Finance Authority (TAX) Sep 9 500.0 Missouri...

Citigroup, UBS Maintain Top Senior Managing Spots for 2003.
October 1, 2003... In a year that promises to be a record one for long-term municipal bond volume, Citigroup Global Markets Inc. and UBS Financial Services Inc. once again have claimed the top spots as lead underwriters for the first nine months of 2003. ...

Top Senior Managers: First 9 Months 2003.
October 1, 2003... Rank Firm Amount Issues 1 Citigroup $40,508.1 545 2 UBS Financial Services Inc. 33,477.5 605 3 Merrill Lynch & Co. 24,512.1 215 4 Morgan Stanley 21,257.8 217 5 ...

Top Small-Issue Managers: First 9 Months 2003.
October 1, 2003... Rank Firm Amount Issues 1 RBC Dain Rauscher Inc. $1,431.6 303 2 Morgan Keegan & Co. 1,157.7 254 3 U.S. Bancorp Piper Jaffray Inc. 964.7 241 4 UBS Financial Services Inc. 835.8...

Top Negotiated Managers: First 9 Months 2003.
October 1, 2003... Rank Firm Amount Issues 1 Citigroup $33,668.8 322 2 UBS Financial Services Inc. 28,164.4 358 3 Bear, Stearns & Co. 17,410.2 129 4 Morgan Stanley 16,303.2 128 5 ...

Top Competitive Managers: First 9 Months 2003.
October 1, 2003... Rank Firm Amount Issues 1 Merrill Lynch & Co. $13,006.3 109 2 Citigroup 6,839.3 223 3 UBS Financial Services Inc. 5,313.2 247 4 Morgan Stanley 4,954.6 89 5 Lehman...

Top Financial Advisers: First 9 Months 2003.
October 1, 2003... Rank Firm Amount Issues 1 Public Resources Advisory Group $30,116.1 104 2 Public Financial Management Inc. 28,374.4 670 3 First Southwest Co. 13,859.5 463 4 Kirkpatrick, Pettis,...

Top Bond Counsel: First 9 Months 2003.
October 1, 2003... Rank Firm Amount Issues 1 Orrick, Herrington & Sutcliffe LLP $33,135.0 366 2 Hawkins Delafield & Wood 20,303.6 294 3 Sidley Austin Brown & Wood 15,184.2 108 4 Pugh, Jones & Johnson...

Top Issuers: First 9 Months 2003.
October 1, 2003... Rank Issuer Amount Issues 1 Illinois (State) $10,610.0 3 2 California (State) 6,068.6 4 3 Golden State Tobacco Securitization Corp. 5,572.3 3 4 New York State Dormitory Authority...

Top Underwriter's Counsel: First 9 Months 2003.
October 1, 2003... Rank Firm Amount Issues 1 Hawkins Delafield & Wood $15,987.5 100 2 Burke Burns & Pinelli 10,524.0 7 3 Winston & Strawn 10,346.3 6 4 Orrick, Herrington & Sutcliffe LLP 9,073.8 ...

Top Bond Insurers: First 9 Months 2003.
October 1, 2003... Rank Firm Amount Issues 1 MBIA Insurance Corp. $51,180.5 1,371 2 Financial Security Assurance 50,291.2 1,504 3 Ambac Assurance Corp. 35,319.4 1,036 4 Financial Guaranty Insurance Co....

Top Disclosure Counsel: First 9 Months 2003.
October 1, 2003... Rank Firm Amount Issues 1 Sidley Austin Brown & Wood $8,504.7 13 2 Hawkins Delafield & Wood 5,750.4 19 3 Orrick, Herrington & Sutcliffe LLP 5,604.3 22 4 Squire, Sanders & Dempsey...

Top Trustee Banks: First 9 Months 2003.
October 1, 2003... (by Dollar Amount) Rank Bank Amount Issues 1 Bank of New York $42,331.7 568 2 US Bank 25,616.4 579 3 Wells Fargo Bank 15,624.3 341 4 Wachovia Bank 11,615.2 250 ...

Top Trustee Banks: First 9 Months 2003.
October 1, 2003... (by Number of Issues) Rank Bank Issues Amount 1 US Bank 579 $25,616.4 2 Bank of New York 568 42,331.7 3 Wells Fargo Bank 341 15,624.3 4 Wachovia Bank 250 11,615.2 ...

U.S. Securities Prices.
October 1, 2003... Prices as of 3:45 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 -- 10/23/2003 0.800/ 0.835/830 0.814 3M --...

Short-Term Tax-Exempt Yields.
October 1, 2003... Sep 30, 2003 Sep 29, 2003 Oct 1, 2002 Selected MIG-1/SP-1+ Notes California Raws Ser A 2s (MIG-1) (June 04) 1.40 1.50 1.45 Los Angeles Co Trans 2s (June 04) 0.90 0.95 1.35 Texas Trans 2s (Aug 04) 1.05 ...

Market Indicators.
October 1, 2003... Dollar amounts are in millions Day's 2003 2003 Daily Yesterday Change High Date Low Date Municipal Bond Index 110-19 +21/32 115-28 (6/13) 105-22 (7/31) 40 Average Dollar Price 101.09...

Municipal Market Data General Obligation Yields.
October 1, 2003... Aaa Aaa (pure) (ins) Aa A Baa 2004 1.00 1.04 1.05 1.31 1.81 2008 2.15 2.24 2.22 2.52 3.08 2013 3.47 3.59 3.57 3.87 4.42 2018 4.03 4.15 4.13 4.42 4.97...

Reoffering Yields.
October 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 9/25 2.5 Colleton Co., S.C. 0.95 2.15 3.50 ... ... ... .... 9/24...

Recent Tables.
October 1, 2003... Weekly Bond Buyer Indexes Friday Bond Elections Wednesday Credit Calendar Friday General Obligation Bond Prices Monday Legislative Status Report Monday Merrill Lynch Corporate Bond Indexes Wednesday Municipal...

Merrill Lynch Corporate Bond Indexes.
October 1, 2003... Performance Comparisons for September 29, 2003 Aaa-Baa Rated Corporates Index Avg. Pct. of Total Return % Close Yield Market Prior Wk. Y-T-D ML Corporate Master 1418.77 4.45 100.00 +0.95 +6.81...

New-Issue Balances.
October 1, 2003... (,000 Omitted) * Since initial reoffering + Revised upward since last report Amount Date NEW OFFERINGS Sold Balance $115,160 9/29 Orange Co., Fla. $115,160 All Sold 66,350 9/29 ...

Municipal Bond Prices.
October 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.
October 1, 2003... Yesterday Previous Day Week Ago The Bond Buyer Municipal Bond Index 110-19 109-30 108-26 Tuesday, September 30, 2003 Maturity Par Call Dollar Conversion Converted Date Date Price Factor ...

Municipal Bond Index Update.
October 1, 2003... The list of bonds used to calculate the Municipal Bond Index was revised after the Sept. 30 pricing. The new coefficient is 1.0173. It was derived by dividing the Sept. 30 index (110.599201) by the average converted price of the new set...

Massachusetts Governor Caps Annual GOs at $1.25 Billion.
October 1, 2003... Hoping to hold the line on debt, Massachusetts Gov. Mitt Romney announced Monday that his budget office will approve no more than $1.25 billion in annual new-money, general obligation bond sales through 2008. The announcement was made...

N.Y.C. IDA OKs Liberty Bonds for Bank of America Plan.
October 1, 2003... The board of the New York City Industrial Development Agency, as expected, yesterday gave the preliminary go-ahead for $650 million in Liberty bonds for a proposed Bank of America headquarters, but the deal still faces hurdles. Before the...

New Jersey Moves Up Two Major Refundings to Benefit From Falling Yields.
October 1, 2003... Last week's rally in municipal bond prices prompted at least one state to move up planned refundings in order to take advantage of falling yields. Officials at New Jersey's Department of the Treasury jumped into the market a few days early...

Competitive Bond Offerings.
October 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 Wednesday, October 1 Hamburg SD ##51 AR Ref &...

Competitive Note Offerings.
October 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 Wednesday, October 1 Long...

Negotiated Bond Offerings.
October 1, 2003... Tentative dates for negotiated sales of $1 million or more. Please fax all pricing & award Information to 212-989-8442. Week Of September 29 Glendale Pk Facs CA Ref COPs 4,200 RBC Dain Rauscher -- -- -- --...

Negotiated Note Offerings.
October 1, 2003... ISSUER ST DESCRIPTION AMOUNT ($000s) LEAD MANAGER INSURER MDY'S S&P FITCH FIRST APPEARED Week Of September 29 Iowa IA Rev Antic 73,490 Morgan Stanley -- -- -- -- -- Today ...

Results of Negotiated Sales.
October 1, 2003... ALABAMA Boaz (City) Sep 8, 2003 $1,670,000 General Obligation Warrants, Series 2003 (Ambac Insured) (book entry). Dated Sep 1, 2003. Due Dec 1, 2004 to 2010. First coupon Jun 1, 2004. Purchased through...

Results of Competitive Sales.
October 1, 2003... ALABAMA University of Alabama Board of Trustees Sep 30, 2003 $25,915,000 University of Alabama at Birmingham General Revenue Bonds, Series 2003B (book entry). Dated Oct 15, 2003. Due Oct 1, 2004 to 2009. ...

Municipal Bond Elections.
October 1, 2003... This table lists bond elections involving $500,000 or more and gives the dates when voters are scheduled to cast their ballots (,000 omitted). Saturday, October 04, 2003 $22,450 Slidell Memorial Hospital, LA $142,415 Lamar...

The Digest.
October 2, 2003... Municipal bonds were little changed in light to moderate trading yesterday while underwriters priced $800 million of Puerto Rico tax and revenue anticipation notes in the new-issue market. Complete market coverage by Nicholas Chesla and...

California To Appeal POB Ruling: State Forced to Tap General Fund.
October 2, 2003... California officials will challenge a lower-court ruling that the state's planned sale of $1.9 billion of pension obligation bonds is illegal. The decision to appeal came as the state was forced to dip into its general fund to make a...

Georgia Rolls on Roads: $315M Next Week, Mainly for Metro Atlanta.
October 2, 2003... Triple-A rated Georgia, experiencing its worst fiscal times in more than a decade, is forging ahead with the sale on Wednesday of $315 million of guaranteed revenue bonds for road projects as it also prepares to sell $500 million in general...

Credit Enhancers: Can Florida Support New Convention Center?
October 2, 2003... A downturn in investor sentiment about Florida's tourism market was blamed for delaying the sale of $325 million of revenue bonds for a convention center and 800-room hotel in Osceola County, forcing the developer to forfeit a $1 million...

New In Brief: Construction Outlays Gained 0.2% in Aug.
October 2, 2003... Construction spending increased 0.2% in August, Commerce Department figures released yesterday show. Total construction spending was estimated at $882.7 billion, following an unrevised 0.2% increase in July, to $880.8 billion. The August...

New In Brief: ISM Index Slips To 53.7 in Sept.
October 2, 2003... The overall economy expanded for the 23d straight month in September, while the manufacturing sector expanded for the third time in as many months, the Institute for Supply Management reported yesterday. According to the ISM's monthly...

New In Brief: Formal Inflation Target Not Needed: Gramlich.
October 2, 2003... The Federal Reserve Board does not need a formal inflation-targeting regime, Fed Gov. Edward Gramlich said yesterday, but he suggested the benefits of such a policy could be earned through an announcement of a long-term inflation range. ...

New In Brief: TBMA Predicts Hike In Treasury Sales.
October 2, 2003... Net U.S. Treasury debt sales in the fourth quarter of this year will increase to $103.4 billion, a 26% rise over the third quarter and a 66% increase over the fourth quarter of 2002, The Bond Market Association said yesterday. In its...

New In Brief: Treasury to Offer Cash Managements.
October 2, 2003... The Treasury Department on Friday will auction $20 billion of 12-day cash management bills, it announced yesterday. The closing time for receipt of noncompetitive tenders will be noon, Eastern Daylight Time, and 1 p.m. for competitive...

Wednesday's Market: Munis Little Changed in Light Trading; $800M of Puerto Rico Trans Priced.
October 2, 2003... Municipal bonds were little changed in light to moderate trading yesterday, while underwriters priced $800 million of Puerto Rico tax and revenue anticipation notes in the new-issue market. Treasuries were mostly lower, trading within...

Chicago City Council OKs Lehman's Brown to Head CTA.
October 2, 2003... The Chicago City Council yesterday approved Mayor Richard Daley's choice of Carole L. Brown -- a public finance banker at Lehman Brothers -- to serve as chairwoman of the Chicago Transit Authority. The position is part-time and pays an...

Chicago Council OKs O'Hare Refunding.
October 2, 2003... The Chicago City Council gave its stamp of approval yesterday to the city's $270 million third-lien general airport revenue refunding bond issue for O'Hare International Airport, which could grow in size if new money is included before its...

N.Y.C. Trust Issuing $85 Million for Dance Foundation, Morgan Library.
October 2, 2003... The New York City Trust for Cultural Resources is preparing to sell up to $85 million of bonds for two notable Manhattan not-for-profits. According to legal notices published this week, the trust will hold public hearings on the sale of $25...

Nominations: Senate Panel Delays Vote on Leavitt as EPA Chief.
October 2, 2003... A Senate committee yesterday postponed for two weeks a vote on Utah Gov. Michael Leavitt, President Bush's nominee to head the Environmental Protection Agency, after the panel's Democrats boycotted the proceedings in an effort to seek more...

State and Local Finance: Tax Opponents Spar Over Internet Taxation at Hearing.
October 2, 2003... Retailers, state officials, and others clashed yesterday at a hearing held by a House Judiciary subcommittee over the merits of a proposed national sales- and use tax-collection system that could eventually boost state and local tax revenues by...

District of Columbia: Voucher Fight Again Delays Fiscal '04 Appropriations.
October 2, 2003... Senate leaders are considering adding the $7.9 billion District of Columbia spending bill to an omnibus bill that would consolidate all of the 10 appropriations measures that Congress has not yet passed for fiscal 2004, which began Oct. 1,...

Housing 'American Dream' Assistance Bill Sails Through House.
October 2, 2003... The House easily passed legislation yesterday that would create a program to provide federal down-payment and closing assistance of about $5,000 for each eligible low-income family purchasing a home for the first time. The proposed...

Transportation: State Officials Urge Enactment of Multi-Year Bill to Aid Economies.
October 2, 2003... A group representing state transportation officials a called on lawmakers and President Bush yesterday to enact a comprehensive six-year transportation funding authorization bill and help spur flagging state economies before Congress adjourns...

Parties Settle Lawsuit Over Defaulted Indianapolis Bond Transaction.
October 2, 2003... Wells Fargo Bank issued a notice to bondholders Tuesday saying that it has settled a lawsuit and would receive $525,000 in payments, which will be distributed to holders of defaulted outstanding 1996 economic development revenue bonds issued by...