Wednesday, March 14, 2018
MANAGING DIRECTOR: Scott Carrithers   PORTFOLIO SALES AND SERVICE: Steve Panknin • George Morris • Jeff Goble • Chris Thompson • Sean Doherty Kevin Doyle • Lonnie Harris •  Mark Tranckino • Robert Schuyler • Tom Toburen • Josh Kiefer  Nicole Burczyk • Kelley Frye • Natalie Regan • Aaron Stoffer • Chuck Honeywell

US Treasury Market
Date	1 mo	3 mo	6 mo	1 yr	2 yr	3 yr	5 yr	7 yr	10 yr	20 yr	30 yr
3/7/18	1.57	1.68	1.87	2.05	2.25	2.42	2.65	2.81	2.89	3.04	3.15
3/8/18	1.57	1.67	1.89	2.05	2.25	2.42	2.63	2.79	2.86	3.01	3.13
3/9/18	1.57	1.67	1.89	2.03	2.27	2.45	2.65	2.82	2.90	3.04	3.16
3/12/18	1.60	1.71	1.89	2.05	2.27	2.43	2.64	2.79	2.87	3.00	3.13
3/13/18	1.64	1.73	1.90	2.03	2.26	2.41	2.62	2.77	2.84	2.98	3.10

                                                                                      Source: U.S. Department of the Treasury, as of 3/13/18  

Bank Qualified New Issue

As we mentioned in yesterday’s Portfolio Manager’s Report, lack of supply has become an issue in the municipal bond marketplace. In anticipation of tax law changes curtailing advance refunding issues, November and December saw a rush to market of municipal sales which effectively robbed supply from the first quarter of 2018.  This lack of supply is likely to worsen as the year progresses when over $40 billion in maturities and calls come due each month in the June thru August time period. For 2018 in total, it is anticipated there will be between $8 and $33 billion fewer municipal bonds issued than are redeemed.

With this dynamic in mind, why not get ahead of the game?  If you are a regular investor in high quality bank qualified bonds, now might be a good time to add to your muni position before increasing scarcity issues drive spread ratios tighter.

Shown below is the offering flyer on the Urbandale, Iowa Community School District general obligation bond issue that was underwritten yesterday by our Capital Markets Group.  This issue is Aa3 rated by Moody’s and desirable block size is still available.

As always, these offerings are subject to price and availability.

This information is intended for institutional investors only. The material provided in this document/presentation is for informational purposes only and is intended solely for private use. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any financial instruments.

•Not FDIC Insured •No Bank Guarantee •May Lose Value