After the wrenching correction of the last two weeks, both the equities and fixed-income markets have earned themselves a well-deserved respite. Not surprisingly, investors and the financial media are now starting to re-focus on the dramatic interest rate spike and...
Month: June 2013
Mining the Web: Public Pension Reform in 19 Cities
The U.S. Conference of Mayors recently released a report describing actions taken by several U.S. cities “to reform unsustainable pension plans in which they are participants or which they administer for themselves.” The report, entitled City Approaches to Public...
Illinois Tests the Market’s Mettle
Faced with a buyers’ strike, the last thing the muni market needed was a surge in supply. … Interestingly, the largest long-term issues on this week’s docket are all “high yield†names which may not be particularly rate-sensitive. Illinois stands to be the most heavily penalized under current market conditions.
What’s Next for the Muni Market?
With both bonds and equities selling off dramatically, there weren’t many safe places for investors to hide this week. From here on, failure to do your homework on the creditworthiness of your muni holdings may result in actual losses, not just relative underperformance.
Top Cities for Job Satisfaction
People who work in the Bay Area tend to report the highest job satisfaction, according to a new report by Glassdoor, an online jobs and career community that offers an inside view of companies. Topping the Glassdoor Employment Satisfaction Report Card are San Jose...
The “Full Faith and Credit” Pledge Under Attack
As one major municipal entity – Jefferson County, Alabama – tries to exit bankruptcy proceedings, another one appears to be on the road to Chapter 9. The City of Detroit entered the annals of municipal default on Friday by skipping the coupon payments on certain of its debt, as part of the debt restructuring plan it presented to creditors.
Detroit Continues to Grapple with Prospect of Municipal Bankruptcy
(Updated June 21, 2013) “Today’s a big day for Detroit creditors as they’re scheduled to meet with and presumably get the bad news from Emergency Manager Kevyn Orr,” said Triet Nguyen, in his Muni Bond Insights column, The Muni Market at a Crossroads, dated June 14,...
Key Considerations for Public Pension Reform
Evolving workforce demographics and long-term budget issues pose the biggest challenges to public sector pension reform, according to a new report released by the TIAA-CREF Institute and the Rockefeller Institute of Government. The report, entitled, Public Sector...
The Muni Market at a Crossroads
Market Outlook As equity markets around the globe swooned, the bond market has finally caught a bid, if only for the time being. Apparently, even far-flung emerging markets have indirectly benefited from the Federal Reserve’s liquidity injections and they are now...
Another Look at Muni Recovery Rates
[Note to Readers: This week’s columns were delayed due to vacation time and graduation season. Starting next week, MuniBond Insights will be published on Tuesday and Friday.] Market Outlook In the aftermath of last Friday’s better-than-expected payrolls number, the...