The busiest account on your desk today: it rebalances this morning, carries the book's heaviest Marcela exposure at 18%, its largest position is likely to be called October 15, and it funds a $150k withdrawal the same day.
Five holdings, $385k par: a Key West water/sewer revenue bond ($120k), two South Florida school district GOs ($150k combined), a Broward utility ($70k), and a New Orleans airport revenue bond ($45k). The school district GOs are insured; the other three are not. All five carry current research and none shows adverse news yet — the exposure is the storm's path, not the credits' finances. Landfall is projected Sunday; two of the five appear as sells in today's rebalance preview.
Part of today's quarterly batch. The preview sells 2 positions and buys 3, turnover $92k, pickup +19 bp TEY, and brings average life back inside the mandate band — this account is one of the two that drifted. Both sells are Marcela-exposed credits, flagged in the preview; the buys carry no storm-path exposure. Approving stages the orders — nothing trades until they're placed.
The model puts 91% call probability on the account's largest holding — $200k of a 2032 water reclamation bond, callable at par on October 15. If it's called, the 2032 rung opens and the account's shape shifts. $200k of replacement par is lined up at 4.58% TEY that refills the rung and keeps average life inside mandate. The alternative: the call proceeds land the same day as the withdrawal below and cover it with no sells.
| Bond | Par | Price | YTW | TEY | S&P | Maturity | Eff. dur. |
|---|---|---|---|---|---|---|---|
| Key West FL Water & Sewer Rev 49327MWS4 · in the storm path · uninsured | $120k | 101.42 | 3.31% | 4.71% | AA | 2031 | 4.5y |
| Broward Co FL School Dist GO 11507VGO6 · in the storm path · insured | $90k | 99.87 | 3.24% | 4.61% | AA | 2029 | 2.8y |
| Commonwealth GO Ser. 2021 20276CGO8 | $110k | 100.63 | 3.08% | 4.38% | AA+ | 2028 | 2.6y |
| Metro Water Reclamation Rev 59259MWR7 · likely call Oct 15 · 91% on the model · the 2032 rung | $200k | 100.02 | 3.02% | 4.30% | AA− | 2032 | 1.1y |
| New Orleans Aviation Board Rev 64766NAV2 · in the storm path · uninsured · sell in today's preview | $45k | 98.71 | 3.55% | 5.05% | A− | 2033 | 5.9y |
| State Turnpike Auth Rev 85732TPK3 · cautionary news · held, no action | $55k | 99.12 | 3.40% | 4.84% | A+ | 2030 | 3.6y |
| Unified School Dist GO 90475USD5 | $85k | 102.11 | 2.96% | 4.21% | AA | 2027 | 1.8y |
| County Hospital Auth Rev 22344CHA1 | $75k | 100.44 | 3.35% | 4.77% | A | 2034 | 6.4y |
Figures are par-weighted over researched, priced positions: 28 of 28 CUSIPs carry current research, 27 carry a close of Sep 29 or later. Prices are evaluated closes shown with their as-of dates in the full table; call probabilities are modeled, refreshed this morning at 5:32 AM. Tax-equivalent yields use this account's tax profile.