Commitment to the City of Pittsburgh (the “City”)

SWS served as senior manager on the City’s $58 million of General Obligation (“GO”) Bonds which represented the firm’s second senior managed transaction for the City.

Marketing Strategy Considering the Volatile Market Conditions Leading up to Pricing

The market leading up to pricing was characterized by continued high volatility and increases in MMD as investors expected higher interest rates from FOMC rate hikes and inflation concerns after higher index increases.

In addition to comprehensive pre-marketing efforts, SWS created the City’s first ever investor presentation to better communicate the City’s credit highlights and further expand the investor base. 

Due to the large new issue calendar as compared to the previous week, SWS recommended accelerating pricing to earlier in the week in order to preempt the higher primary issuance supply and better navigate the market volatility.

Positive tailwinds in the market included scarcity of Pennsylvania new issuance supply, which increased investor demand for the City’s GO bonds.

Strategic Timing and Robust Retail Demand Led to Aggressive Pricing Results

With a positive tone in the market the morning of pricing, SWS recommended pricing before Fed Chairman Powell’s testimony before Congress. The City's first ever investor presentation was viewed by 18 investors, of which 11 firms submitted a total of $200 million in orders, and 8 firms which were not publicly reported as holders of the City’s GO bonds.