On October 23, SWS served as bookrunning senior manager on $1.5 billion New York City Transitional Finance Authority Future Tax Secured Tax-Exempt Subordinate Bonds, Fiscal 2025 Series D in the midst of a difficult market. Notable highlights from the transaction include:

On the morning of institutional pricing, SWS, the City, and the FAs elected to wait to open the institutional order period until the first MMD read had been posted.

At the end of the institutional order period, the transaction had generated a total of approximately $9.5 billion of orders (inclusive of both retail and institutional orders), or an oversubscription level of 6.38x. All maturities were oversubscribed for ranging from 1.36x to 14.57x.

Following repricing, the transaction concluded with $7.5 billion in institutional priority orders, which combined with retail orders brought the overall priority order book to $7.9 billion in orders (excluding stock orders) from 119 unique investors.

When taking into account the large end of day MMD cuts on 10/23, final pricing levels for all maturities were tighter than the original retail order period spreads by 5 to 17 basis points across the curve. Additionally, there were no unsold balances.

While the TFA transaction ultimately priced successfully, this was not the case for many other transactions that planned to price that week, with many other transactions pulled or priced with multiple hold-the-offering-price maturities.

Overall, SWS achieved these pricing results while MMD rose by 30 bps from October 21stto October 23rd.