Articles by tag - munis

Municipal Bond Update - August 10, 2010
The summer rally continues, with high grade yields falling further into historic lows as the economic context. The weak jobs reading and more abundant concerns over long-term growth, have assuaged near-term inflation fears. Primary and secondary market scarcity remain pronounced, even as individual investors invest directly or through mutual funds to shield income from future rising tax rates.
Posted on August 10, 2010 by
Municipal Bond Update - 2000 May Be Good Roadmap for Direction of Muni Market
In 2000 was the last time we had a census and we had similar types of high expectations, high estimates for what the non-farm data would be when it was released in June. Interestingly enough, 2000 was also a weak period for the US economy or at least there was certainly a great deal of ambiguity. In 2000, municipals and Treasuries rallied fairly significantly, albeit from much higher absolute levels, but I think that you get so much ambiguity around this non-farm data, it’s hard to read the employment reports during the summer months as the census data is adjusted for in the numbers.
Posted on July 14, 2010 by
Municipal Bond Discussion - Munis Stable, California Budget, IRS Audit
A discussion of municipal bonds covering topics such as the IRS audit of the Build America Bond market, the state of the muni market, California's budget update, and the impact of the Regulatory Reform Bill.
Posted on June 02, 2010 by
Municipal Bonds Gain - California Munis Could Look Attractive Soon - Regulatory Reform Moves Forward
Municipal bonds had an excellent week last week as, despite the flight to safety in Treasuries, broad-based “de-risking” in some asset classes, and more rhetoric about just how bad municipal issuers are (the latest, “Municipals The Next Financial Land Mine?”), muni yields trickled lower.
Posted on May 25, 2010 by
Are Municipal Bonds in for Rough Landing?
The business press is buzzing about the default of the Las Vegas monorail project and its implications for the broader muni bond market. The consensus seems to be that a wave of defaults are coming. But municipal bonds are still very safe and are offering some attractive yields.
Posted on May 18, 2010 by
Munis Untouched by European Fears - Municipal Bond Update - May 17, 2010
The municipal market continues to bob along at the top of the dishpan, regardless of what’s going on below. There, Treasuries and gold have surged, unwound, and surged again on flight to safety fears while the Euro-drama has unnerved equities and credit.
Posted on May 17, 2010 by
Municipal Bond Risk Overstated - Interview with Tom Doe of Municipal Market Advisors
In a recent interview, Tom Doe, the CEO of MMA provided his thoughts on the municipal bond market. This includes his belief that Jim Chanos and others are overblowing municipal bond default concerns. He also discusses the BAB market, the outlook for munis in May, and how Moody's and Fitch's rating recalibrations will impact the muni market.
Posted on May 11, 2010 by
Extreme Market Volatility Passes Munis By - Municipal Bond Update May 10, 2010
Last week’s extreme volatility in Treasury prices, equity prices, sovereign contagion and rescue, and employment generally swept by the municipal market. By not changing much, municipals were left appearing substantially cheaper versus Treasuries, and perhaps riskier versus the for-now bailed out European sovereigns.
Posted on May 11, 2010 by
Municipal Bond Market Update - May 3, 2010
A slow new issue calendar, uncertainty over whether or not municipals are at risk from a “sovereign contagion”, low nominal yields, underperformance versus Treasuries, more muted fund flows, tighter evaluated credit spreads, and tax-related selling have undermined confidence in municipal prices recently.
Posted on May 04, 2010 by
Municipal Bond Market Update - March 29
Munis were substantially weaker last week, with accounts impelled by soft Treasury auctions to realize gains and address near-term risks by moving farther out along the yield curve. Tax-related selling facilitated the upward shift in yields. By Friday, the tax-exempt curve had flip flopped; aggressive levels up front had turned concessionary and a formerly buyer-friendly long end appeared aggressively priced for the first time in months.
Posted on March 29, 2010 by
House Approves Extending Build America Bond Program Through 2013
The U.S. House of Representatives voted today to extend the Build America Bond program through 2013. The program has proven popular with municipalities because of the 35% subsidy provided by the Federal government. The bonds have also proven to be popular investments with institutional investors and sovereign wealth funds, and foreign investors.
Posted on March 24, 2010 by
Municipal Bond Market Update - March 22
The municipal market continues to defy mean reversion, although last week modest spread widening did occur as the Treasury market unspooled some pricing strength up front and as opportunistic institutional holders took a chance to realize some gains. Still, the net effect was very limited and tax-exempts outperformed a flattening Treasury curve. There are still more things at work in our sector’s favor.
Posted on March 22, 2010 by
Municipal Bonds May Be Exempt from Health Reform 3.8% Tax on Investment Income
The shock waves from the recently passed health reform bill are still making their way around the country and the investment world, but one item that may be of interest to readers is how the investment income tax will work.
Posted on March 22, 2010 by
Municipal Bond Market Update - March 15
Although trading opportunities remain in the municipal market, this is not a traders’ market. Rather, income-oriented buyers (so called, going-away demand) has driven yields and credit spreads lower and lower as the scarcity of acceptable product continues to meet a growing need for safe, tax-exempt income.
Posted on March 15, 2010 by
Investor Favoring Treasuries Over Municipal Bonds as Return Spread Narrows
Many investors who traditionally invested in municipal bonds are instead buying Treasuries as the yield spread between the two investments moves closer together.
Posted on March 08, 2010 by

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Hard Ways to Earn Money: Babysitting Nightmare - Find out the easier way to save and earn more.
Posted on February 17,2012
Municipal Bond Market Review - Feb 2010 (Part I)
Posted on December 16,2010

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