NYC Bonds

Investors Love New York City Bonds

With Valentine’s Day approaching, many investors found something to love in New York City’s February 12 bond offering. The City of New York sold $1.5 billion of general obligation bonds via negotiated and competitive sales. All $302 million of orders from individuals and professionally-managed accounts were matched with the bonds they desired. The two tranches of competitively sold bonds attracted nine and ten suitors each. Read the press release.

 New York Water Completes Successful Pricing

The New York City Municipal Water Finance Authority sold $528 million of Second General Resolution Revenue bonds on February 5. A one-day priority order period for individual investors garnered $157 million in orders. Institutional investors followed with over $665 million in orders for the bonds.

 NYC Bond History – Special Assessments Pave the Way for Public Works

An illustration of New York circa 1667, shortly after coming under English rule (from the New York Public Library)

In 1657, New York City (then New Amsterdam) initiated its first special assessment to pay for a public works project. Brouwer Straate, present-day Stone Street, became the first street in the city to be paved. After construction was complete, two overseers assessed each building along the street and collected payment for its proportionate share. An alternative approach to completing public works at that time required the citizens receiving the benefit of the project to do the work themselves, such as shoring up a waterfront and paving another street. The special assessment approach was described as “vastly preferable” to the direct work. (h/t Kemp Lewis) (The Finances of New York City (1898), by Edward Dana Durand, p.11-12)

Looking Ahead

• New York City plans to sell $1.36 billion of tax-exempt and taxable general obligation bonds via negotiated and competitive sales on March 4. Individual investors have priority in placing orders for the tax-exempt bonds on Monday and Tuesday, March 2 and 3. New York City also plans to sell $75 million of Adjustable Rate Remarketed Securities the week of March 16. Read the press release.
• The New York City Municipal Water Finance Authority plans to sell $500 million of tax-exempt bonds via negotiated sale the week of March 9.

As always, we appreciate your interest in New York City bonds.

Marj Henning
Deputy Comptroller for Public Finance