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- a daily update of the Municipal Bond AAA Non-Callable Yield Curve,
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MuniNet provides commentary and analysis relating to municipal bonds and their fundamental credit issues. From an investor perspective, we provide you with daily AAA yield levels on tax-exempt municipal bonds courtesy of Standard & Poor’s Securities Evaluations, Inc….
Daily Municipal Bonds Yields April 18, 2019
- Tax-Exempt AAA Non-callable S&P Yield Curve Recap (based on representative indices) at the close of day on April 18, 2019, compared to the previous market day.
- Municipal bond yield levels trended slightly downwards as compared to the previous day across many non-callable key benchmark maturity indices.
- The two-year, three-year, five-year, seven-year, 10-year, 20-year, and 25-year maturity indices each lost one basis point in yield.
- The six-month, one-year, 15-year, and 30-year maturity indices had no change from the previous day.
- Non-callable municipal bonds normally carry lower yields on maturity bonds than non-callable ones reflecting the likelihood that investors anticipate principal repayment on the called bonds prior to the stated maturity. (Optional redemptions usually apply to municipal bonds with maturities of ten years or more).
Source: © 2006 Standard & Poor’s Securities Evaluations, Inc., a subsidiary of The McGraw-Hill Companies, Inc. All rights reserved. Information has been obtained from sources believed to be reliable. However, Standard & Poor’s and MuniNet LLC shall not be liable for any claims or losses of any nature in connection with information contained in this document, including but not limited to, lost profits or punitive or consequential damages, even if it is advised of the possibility of same. All references to municipal bonds or information related thereto is for informational purposes only. It is general in nature and based on matters or authorities that are considered reliable but not guaranteed or verified by MUNINET LLC.
Featured Bond Week of April 15: City of Miami Beach, Florida $152 Million General Obligation & Refunding Bonds
The City of Miami Beach Florida $152 Million in General Obligation and Refunding Bonds
The City of Miami Beach, Florida is scheduled to issue Series 2019 Bonds to fund multiple infrastructure projects in the realms of Public Safety, Neighborhood Improvements, and Parks and Recreational Facilities. The 2019 Bonds will also provide refunding for the outstanding Series 2003 Bonds of the City. The bonds are direct general obligations of the City.
The Bonds are set to be negotiated during the week of April 15, 2019 by an underwriting group led by BofA Merrill Lynch. Moody’s rates the Bonds Aa2 and S&P assigns a rating of AA+.
About Miami Beach & the Purpose of the Bonds
The City of Miami Beach had a 2018 estimated population of 93,323. In 2017 the estimated family income was $69,764. Miami Beach has seen major changes in demographics. As per the 1980 Census the average age was 65.3, declining to 39 by 2000, and was 40.3 in the 2010 Census.
Tourism and hospitality play a large role in generating revenue in the City. Hotel data from 2018 showed that Miami Beach had a 11.8% increase from 2017 in terms of revenue per available room and a 2.6% increase based on hotel occupancy.
For the full article with a statistical snapshot of financial measures, click here.
Fiscal Year 2017 Municipal Bond Audit Times Are Still Too Slow
Municipal Bond Audit Times Show Slight Improvement Since 2015 But Most Still Late to the Table — The County, State and City Sectors are the Least Timely
By Richard A. Ciccarone
Municipal bond analysts and investors are accustomed to waiting a lot longer for municipal bond financial audits to be completed after the close of the fiscal year than they would on a corporate bond. While public corporations are required to file an annual audit within 60 to 90 days after the close of the year, municipal bond borrowers often finish their audited annual reports in close to twice that time and a large number take even much longer.
While investors need the audit documents for credit evaluation and securities pricing purposes, they are not the only stakeholders that have a need to see timely audited financial reports. Governing boards associated with public bodies and not-for-profit organizations need to review the audits in order to fulfill their duty for proper oversight. Like municipal bond analysts and investors, they are better able to respond to issues disclosed in an audit if the documents are timelier. Although this issue has been lingering for decades, the time it takes to complete and sign an audit after the fiscal year has been completed hasn’t changed much over the last ten years.
Growth in Public Higher Education Debt Outstanding Outpaces All Other Major Municipal Bond Sectors
Public Higher Education Debt Outstanding Has Grown by Over 80% Since 2007 Leading All Other Major Municipal Bond Credit Sectors
by Richard A. Ciccarone
Municipal Bond Credit Sectors — Ten Year Outstanding Debt Trend
Based on municipal bond credit sector medians, Public Higher Education and Community Colleges registered the biggest increases in long term debt outstanding — more than any other major credit sectors observed in the municipal bond market during the period 2007- 2017. Universities and colleges saw a ten year growth of 85.2%, the most of all major municipal bond sectors tracked by Merritt Research Services LLC, an independent municipal data and research company that tracks financial conditions on over 10,000 municipal bond borrowers. Long term debt attributed to Community colleges followed close behind with an 80.7% growth rate. The ten year time span used in the comparison included the Great Recession as well as the subsequent recovery years.
Higher education institutions, in general, have incurred higher debt loads for capital improvement programs over the past two decades, triggered by a “keeping up with Jones’” mentality that swept the board rooms of college administrations. The wave of more expansive and luxurious campus facilities at competing colleges and universities was motivated in part on the grounds that the shrinking pool of eligible college age potential students required them to provide state of the art facilities. Private higher education institutions, many of which started their capital programs earlier than public institutions, ranked fifth in their median debt expansion with a smaller but still robust 39.6% growth rate.
EMMA – Electronic Municipal Market Access
Official online MRSB repository providing free public access to official disclosures, trade data and other information on the municipal securities market.
Merritt Research Services: Benchmark Central
Merritt Research Services provides benchmark median values for municipal credit analysis across 13 different sectors. Freely available and updated regularly.
Governmental Accounting Standards Board (GASB)
Independent organization that establishes and improves standards of accounting and financial reporting for U.S. state and local government.
The Bond Buyer
Established in 1891, an independent paid-subscription information resource of news, analysis and data serving 40,000+ in the municipal finance community.
A municipal bond new issue official statement (prospectus) service. MuniOS, a division of ImageMaster Inc, makes available preliminary and final documents. Official statements are provided by region and state.
IRS Tax-Exempt Bond Statistics
Includes data on tax-exempt "public purpose" (Governmental) and "private-activity" bonds, with statistical tables and Statistics of Income Bulletins.
What Are Municipal Bonds? - Investor.gov
What Are Municipal Bonds?What are municipal bonds? Municipal bonds (or “munis” for short) are debt securities issued by states, cities, counties and other governmental entities to fund day-to-day obligations and to finance capital projects such as building schools, highways or sewer systems. By purchasing municipal bonds, you are in effect lending money to the bond issuer in exchange for a promise of regular interest payments, usually semi-annually, and the return of the original investment, or “principal". An excellent primer on municipal bonds, particularly from an investors perspective. Answering these questions: Where Can Investors Find Information About Municipal Bonds? What Are Some Of The Risks Of Investing In Municipal Bonds? In Addition To The Risks, What Other Factors Should You Consider When Investing In Municipal Bonds?