Original article by Danielle Moran
Wesly Pate, senior portfolio manager at Income Research, shared his thoughts with Bloomberg on the California sale of $1.4 billion in general obligation bonds.
Pate recognized the California sale as an “important step” in having the market return to normal as “issuance will beget issuance.” Pate also noted that while one or two deals won’t get the ball rolling, the market has to start somewhere. “Well known blue-chip equivalent issuers in the muni market will access it first and once that starts to occur you will get things moving in the right direction and return to a more normalized issuance market.”
Pate concluded saying that “the market is open…and participants are present and they are willing to buy bonds as long as it’s a straight-forward credit.”
