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City of New York



General Obligation Bonds Fiscal 2023 Series C & D

February 22, 2023


Image by Sam Mgrdichian

Proceeds of the issue will be used to refund certain of the City’s outstanding General Obligation Bonds. The Series C Bonds were structured as serial bonds maturing between 2024-2034 with all 5% coupons and the Series D Bonds were structured as serial bonds that mature between 2023-2027 with 4% and 5% coupons (the 2024-2027 maturities were bifurcated during the Institutional Order Period). SWS assisted in preparing the investor roadshow, which received 140 views.

Market Conditions & Structuring:

Following a largely calm start to 2023, January CPI (6.4%) was released the week before pricing and indicated that inflation may be improving. Despite this, MMD posted substantial cuts between 2-15 basis points every day leading up to pricing. The front of the curve was most heavily impacted, with 1-year MMD posting cuts totaling 44 basis points. These volatile market conditions prompted the City, FAs and SWS to offer a variety of coupon and maturity alternatives.

Pricing Results:

Despite the extreme volatility in the days leading up to pricing and MMD cuts of 10 bps (2025-2028) and 6 bps (2029-2053) on the day of the Retail Order Period, all maturities were offered to retail investors and, overall, received $587.39 million retail orders (0.86x subscribed). For the following day’s Institutional Order Period, the initial MMD read remained unchanged from the day prior. Due to this stability, SWS tightened the spread on the 2023 maturity by 4 basis points, the spreads on the 2030 and 2031 maturities by 1 basis point, and the spreads on the 2032 through 2034 maturities 2 two basis points. Due to the oversubscription levels after the Retail Order Period, the 2024 and 2032-2034 maturities were not offered to institutional investors.

After the opening steady MMD read, subsequent MMD reads showed projected cuts between 2-4 basis points between 2025-2027. This change coupled with investor resistance led to unsold balances at the conclusion of the institutional order period. Given these balances, SWS widened spreads in select maturities. Across both Series, spreads on the 2026 maturity were increased by 1 basis point, spreads on the 2027 maturity were increased by 3 basis points, spreads on the 2028 and 2029 maturities were increased by 2 basis points and spreads on the 2030 maturity were increased by 1 basis point.

Overall, the City received $485.87 million in institutional priority orders, which combined with retail orders, brought the overall book to $1.07 billion in orders (excluding stock orders) from 49 unique investors. Overall, the financing was 1.56x oversubscribed, with subscription levels ranging between 0.66x – 4.17x across all maturities. Siebert underwrote $23.56 million in unsold balances.

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