Month: September 2013

The New Risk/Reward Equation in Munis

All eyes are on Washington this morning as market participants focus on the potential government shut-down and the fiscal restraint that is bound to come out of current budget negotiations. All of this uncertainty has had the expected effect of pressuring equities and...

Munis Go from Depression to Elation

Market Outlook Happy times are back in the bond market, at least until the next payrolls report on October 4th. In the absence of significant economic data, fixed-income traders have been able to maintain the positive momentum from last week’s “No Fed Taper” rally....

With No Taper, Munis Outperform Treasuries … For Now

Market Outlook In technical terms, it was purely and simply a “wimp-out.” After leading global financial markets into the red zone, the Fed shockingly chose to punt (okay, shaky football analogy, but you get the point). Going into Wednesday’s FOMC meeting, Fed...

Muni Market Rallies on Shrinking Volume Forecasts

Market Outlook Larry Summers, we hardly knew ye. Or perhaps we know you too well? The succession issue at the Fed and the prospect of a Summers nomination as Chairman have been weighing on the financial markets. As they say, markets hate uncertainty and Summers has...

Time to Start Getting Excited About Munis Again?

Market Outlook One of Verizon Corp.’s most recent slogans is “Rule the Air.” Apparently, the telecom company also ruled the bond market for a few days this week. With the benefit of hindsight, it appears some of the recent spikes in Treasury yields, even after last...

Puerto Rico Paying Dearly for Bungled Disclosure Efforts

Market Outlook Over the past two sessions, the Treasury market has been drawing support from a disappointing August payrolls number and from the flight-to-quality bid related to the potential U.S. strike on Syria. This morning, the Russian government has apparently...

Fear-Mongering in Today’s Municipal Bond Market

The municipal market’s retreat started in May with the general bond market rout related to the potential end of the Fed’s quantitative easing efforts. However, it has picked up steam over the past two months on more idiosyncratic grounds: the Detroit bankruptcy filing and, more recently, renewed concern about the potential systemic risk posed by Puerto Rico.

Does the ACA Pose a Health Risk to State Finances?

The Patient Protection and Affordable Care Act (ACA) was passed by Congress and signed into law by President Barack Obama on March 23, 2010. The Act includes many changes to the way Americans receive and pay for health care coverage. Specifically, the ACA mandates...

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