| | High Yield Report: In October, the municipal high yield market outperformed high grades with a total return of -1.757% as measured by the Standard & Poors/Investortools High Yield Index vs. -2.304% return on the investment grade index for the same period. The health care sector priced two new issues totaling $143 million. The larger deal totaled $100 million and was issue by Tarrant County, TX for construction of a senior living facility, the max yield term in 2044 structured to yield 8.50% + 400 over the AAA curve. In addition, investors had to deal with the Chapter 11 bankruptcy filing by Erickson Retirement Communities, one of the largest management companies in the industry. Erickson manages approximately 19 continuing-care retirement communities (CCRC’s) totaling approximately $510 million in muni debt outstanding. The land sector was off approximately 15 to 20 basis points with two new issues priced totaling $10 million. In the charter school market, a $65 million ‘BBB’ rated charter school in Texas was priced to yield 6.30% in 30 years. In the secondary market, several non-rated charter school’s traded throughout the month which resulted in higher yields at around 30 to 50 basis points. In the IDR sector, airline issues closed the month off in price by 3 to 6 points with yields up from 50 to 90 basis points on weaker bids and offerings for both secured and unsecured issues. Finally, tobacco securitization bonds were significantly off on weaker markets. Prices on the long bonds were down from 6 to 9 points and yields rose by 70 to 100 basis points. | | | |