Since the CWA Authority is borrowing in the municipal market for the first time, the transaction will require additional yield to help attract investors, Tom Boylen, a trader at Performance Trust Capital Partners in Chicago, said in a telephone interview. "It's an essential-service revenue and that should carry it through the market in terms of clearing the deal," Boylen said. "And right now it's tough to find yield. So if you can go down the credit spectrum a little bit and pick up some yield with an essential-service revenue, I think people are going to look at it."
NEWS & COMMENTARY
Indiana Sewer Bond Leads Utility Debt Sales as Yields Plummet: Muni Credit
August 16, 2011