JPMorgan Chase & Co., senior manager on the deal, had to step in to buy about $46.7 million of the $950 million tax-exempt portion, most of which has been sold since, the person said.
A spokesperson for the bank declined to comment.
‘Get Cheaper’
The uncertainty around rates is making investors apathetic about new bond sales, said Peter Block, a managing director at Ramirez & Co.
“If there’s enough people sitting on the sidelines, deals are just going to have to get cheaper,” he said.
Nuveen noted the market weakness in a report this week, pointing to a AAA rated sale last week by a Virginia state agency on behalf of Chesterfield County. Bonds that priced to yield 0.66% in 2025 have since traded as high as 0.87%, data compiled by Bloomberg show.
A sense of ambivalence has entered investors’ minds, said Vikram Rai, head of the municipal strategy group at Citigroup Inc.
“On the one hand, yes it’s cheaper,” he said. “On the other hand, could it get even cheaper? They’ll invest some now and wait for better buying opportunities. The conflict is justified.”
This article was provided by Bloomberg News.