Company News


Municipal

New Issues

4/24/17
$530,030,000
Los Angeles Dwap
Co-Manager Serials 2018-2047
4/24/17
$65,680,000
New York HFA Affordable Hsg
Senior-Manager Serials 2019-2028 Terms 2032 2037 2042 2047
4/24/17
$125,000,000
Connecticut HFA
Co-Manager Serials 2021-2047
4/24/17
$11,230,000
Rhode Island Infrstructure Bank
Co-Senior Serials 2019-2036
4/24/17
$300,000,000
Port Auth of NY & NJ
Co-Senior Term 10/15/2057

Capital Markets

New Issues

Debt

4/10/2017
$3b - General Motors Financial - CoMgr

3/17/2017
$11b - Verizon Communications - CoMgr

3/10/2017
$700m - Realty Income - CoMgr
$2b - McDonald's - CoMgr

3/3/2017
$4.5b - American Express Credit - CoMgr
$300m - Connecticut Light & Power - CoMgr

Equity

Insights

CREDIT AND MARKET STRATEGY
MUNICIPAL MARKET WEEKLY

April 24, 2017

Munis Likely to Underperform...We Like AMT bonds, CAL bonds

Last Week

Munis outperformed Treasuries for the third consecutive week, extending gains across the curve as caution prevailed in the Treasury market amidst geopolitical events, including the French election and North Korea missile crisis. Corporate earnings generally beat estimates and economic data releases were slightly weaker. Munis benefited from...

This Week

Rates product in general should be out of favor vs risk assets, with risk-on sentiment off to a bang today on the heels of Sunday’s first round of French elections and forthcoming (details?) of Trump’s “massive” tax reform plan on Wednesday. Muni prices and inflows in particular could be adversely impacted by...

Supply

The $8.4 bil. of tax-exempt supply this week should be priced attractively. The negotiated calendar is led by $1.9 bil. Kaiser Permanente, $994 mil. Port Auth of NY/NJ, $530 mil. LA DWP, and in the competitive space, Maryland DOT with $285 mil.  Over the next 30 days, we see gross supply at...

AMT Munis

President Trump has vowed to repeal the 47-year old Alternative Minimum Tax (AMT) tax, which was originally instituted to capture tax revenue from about 1 mil. individuals, that due to deductions and exemptions, paid very little income tax at the time. As incomes have risen over the last 47 years and because the AMT thresholds have not been indexed to inflation, the AMT has morphed into...

Full Weekly Report

Quarterly Review

SAMUEL A. RAMIREZ & COMPANY, INC.
QUARTERLY MACROECONOMIC OUTLOOK
FINANCIAL STRATEGIES GROUP – 1st QUARTER 2017

Dear Clients,

Please find attached Ramirez & Co.’s Quarterly Macroeconomic Outlook. In our report, we continue to monitor the US economy, global events and the Fed’s outlook on the economy and rates:

  • US rates and equity markets maintain near year-end levels with the markets showing trepidation, perhaps as a result of the failure to pass the American Health Care Act, while Eurozone 10Y rates move into positive territory.
  • The headline unemployment rate ticks downward to the lower bound of the estimated natural rate and wages show strength with hourly earnings increasing by 2.7% YoY and aggregate hours worked jumping a formidable 1.4% YoY. In keeping with this, the Fed maintains its forecast for three total rate hikes in 2017 and announces the possibility that it will begin tapering its balance sheet as soon as late 2017.
  • The VIX and the bond market MOVE index tick up while political uncertainty ticks down but remains elevated, possibly reflecting uncertainty over the administration’s ability to push through the promised fiscal spending and tax reform programs. On the other hand, GDP growth expectations move up slightly to around 2% plus and survey based production sentiment remains elevated, demonstrating continued optimism.

    Members of our Financial Strategies Group, Niso Abuaf, Konstantin Semyonov and Duncan Sinclair, would be happy to discuss further any of the material with you.

    Full Quarterly Report
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