Port Authority Gets No Bids for Taxable Bond Offering
By Jeremy R. Cooke and Adam L. Cataldo
Dec. 3 (Bloomberg) -- The Port Authority of New York and New Jersey attracted no bids from investment banks interested in underwriting a $300 million taxable note offering in another sign that the seizure in credit markets persists.
The three-year notes, backed by revenue from the bi-state agency that operates airports, river crossings and transit in the New York City area, were placed up for competitive sale this morning. The deal carried the highest short-term ratings from Moody’s Investors Service, Standard & Poor’s and Fitch Ratings
and would have been the largest of its kind in eight months.
“It’s astonishing,” said Fred Yosca, managing director and head of trading at BNY Mellon Capital Markets in New York. “A household name, like the Port Authority, not being able to get a bid is truly a sign of a market that is in distress.”
States and cities have struggled to sell bonds through advertised bidding in recent months
, as underwriters focus on lining up individual investors in negotiated deals ahead of time to avoid getting stuck with too many unsold securities.