Airport Bonds: Yield And Duration Without The Volatility

Earlier this month Los Angeles Department of Airports bonds worth $241.8M met with a strong response – retail investors bid for $194M, while institutions ordered for a billion dollars. According to the management, all-in interest costs came in at 4.66%. Lead manager De La Rosa & Co called it a “a really nice reception,” and said the bonds were priced only 33 bp cheaper than a $240 million issue by Triple-A rated San Francisco Bay Area Rapid Transit District, showing that the market is again stable after the turmoil this summer. Municipals Citi Research strategists George Friedlander, Mikhail Foux and…