Month: June 2013

Municipals Bounce Back Strongly – For Now

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...

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.

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.

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...

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