May 13, 2020 – New York City’s premier credit – the AAA-rated Transitional Finance Authority (TFA) – received a warm reception by municipal bond investors on Tuesday, selling $1.1 billion bonds – $850 million exempts and roughly $260 million taxables.<\/p>\n\n\n\n
In a press release, TFA, the City’s Budget Office and the Comptroller’s office said: <\/p>\n\n\n\n
During a one-day retail order period for the tax-exempt bonds, TFA received $553 million of orders from individual investors, out of which approximately $324 million was usable. During the institutional order period, TFA received approximately $5.7 billion of priority orders, representing 11x the bonds offered for sale to institutional investors.<\/em><\/p>\n\n\n\n Given strong investor demand during the institutional order period, yields were reduced by 3 – 5 basis points for maturities in 2031 through 2035, 15 basis points for maturities in 2036 through 2040, 8 basis points for the 2041 maturity and 10 basis points for the 2045 maturity. Final stated yields ranged from 0.76% in 2022 to 2.77% in 2045 for the 4% coupon and 3.056% in 2046 for the 3% coupon.<\/em><\/p>\n\n\n\n The TFA was first established in 1997, when New York City’s credit ratings were much lower than levels today. <\/p>\n\n\n\n TFA bonds are highly rated as they are secured by city personal income taxes collected by New York State and transferred to bondholders’ trustee before being remitted to the city. <\/p>\n\n\n\n If city personal income taxes are insufficient to pay bondholders, city sales taxes are also available to repay debt service.<\/p>\n\n\n\n Contact Jumanne Johnson at JJohnson@buymuni.com.<\/p>\n","protected":false},"excerpt":{"rendered":" May 13, 2020 – New York City’s premier credit – the AAA-rated Transitional Finance Authority (TFA) – received a warm…<\/p>\n","protected":false},"author":4,"featured_media":653,"comment_status":"open","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[12,61,4,102],"tags":[],"class_list":["post-831","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-issuers","category-new-issue","category-nyc","category-underwriting","wpcat-12-id","wpcat-61-id","wpcat-4-id","wpcat-102-id"],"jetpack_featured_media_url":"https:\/\/buymuni.com\/wp-content\/uploads\/2019\/11\/20191106-RainyNYC.jpg","jetpack_sharing_enabled":true,"jetpack_likes_enabled":false,"_links":{"self":[{"href":"https:\/\/buymuni.com\/index.php?rest_route=\/wp\/v2\/posts\/831","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buymuni.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buymuni.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buymuni.com\/index.php?rest_route=\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/buymuni.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=831"}],"version-history":[{"count":4,"href":"https:\/\/buymuni.com\/index.php?rest_route=\/wp\/v2\/posts\/831\/revisions"}],"predecessor-version":[{"id":835,"href":"https:\/\/buymuni.com\/index.php?rest_route=\/wp\/v2\/posts\/831\/revisions\/835"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buymuni.com\/index.php?rest_route=\/wp\/v2\/media\/653"}],"wp:attachment":[{"href":"https:\/\/buymuni.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=831"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buymuni.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=831"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buymuni.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=831"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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