Wealth

On August 19, 2026, Loop Capital Markets served as the Senior Manager for the New York City Transitional Finance Authority’s (“TFA” or the “City”) $1.5 billion Future Tax Secured Subordinate Bonds (the “Bonds”) Fiscal 2026 Series B, Subseries B-1 rated Aa1 (negative) by Moody’s, AAA (stable) by S&P, and AAA (stable) by Fitch. The proceeds of the bonds will be used for capital purposes for the City of New York and to pay certain costs of issuance.

Ahead of pricing, municipals were pressured by an oil shock tied to the U.S.–Iran conflict and Fed uncertainty. On August 17, MMD was flat in 2027–2029, then weakened by 1 bp in 2030–2031, 2–5 bps in 2032–2041, and 6 bps in 2042–2056. Volatility continued August 18–19 as inflation and federal borrowing concerns lifted long-term Treasury yields and weighed on equities. Conditions improved August 19 after Treasury buybacks lowered 10- and 30-year yields by 6 and 9 bps, respectively, though heavy supply still pressured municipals. The TFA deal was the week’s second largest amid $16.3 billion of expected supply, while municipal bond funds posted their 17th straight weekly inflow, reaching $37 billion year-to-date.
Loop worked with the City and its municipal advisors on an electronic investor roadshow, which was viewed by 45 institutional investors, and kept the City informed on market conditions during pre-marketing.

The sale included a retail order period (“ROP”) on August 18 and an institutional order period (“IOP”) on August 19. During the ROP, all $1.5 billion of bonds were offered, generating $394.25 million of retail orders, including $348.85 million submitted by Loop, with $287.98 million usable and three maturities fully subscribed. During the IOP, $1.28 billion was offered as the MMD curve rose 3–7 bps from ROP levels. Coupons on the 2043 and 2044 maturities were revised from 5.00% to 5.25%, and the 2054 term bond was restructured into 2053 and 2054 serial maturities with 5.00% and 5.50% coupons, respectively. The City received $5.22 billion of institutional orders from a broad investor base, with subscription levels from 1.52x to 8.68x. Overall, the transaction drew 899 unique retail and institutional orders totaling $5.62 billion, or 3.7x subscription. Of these, Loop submitted $5.43 billion submitted of orders. At repricing, yields were lowered by 1–9 bps, except the 2050 maturity, and the deal concluded with $4.77 billion of orders, 3.18x oversubscription, no unsold balances, and a 4.86% TIC.