With virtually no new issue supply to speak of this holiday week and relative stability on the rate front, this might be a good time to take stock of everything that’s happened in the muni market this year. And there certainly hasn’t been much to be thankful for. By...
Month: November 2013
State and Local Public Pension Plans: Is the Crisis Over – or Has it Just Begun?
Very few state and local public pension plans have earned bragging rights for their performance over the past year, and others have climbed deeper into the danger zone. Overall, state and local pension funds saw little improvement during the 2012 fiscal year,...
A Historic Muni Bankruptcy Comes To a Close … For Now
Market Outlook The bond market was looking for bad news this week and found it in the minutes of the FOMC, released on Wednesday. Apparently, tapering has remained on the table, which really shouldn’t surprise anyone. However, the Committee did leave the door open for...
JeffCo Joins Puerto Rico in Dubious Investment Grade Category
Market Outlook The week is starting out on a quiet note as the market looks forward to tomorrow’s inflation, consumption and housing data. The CPI data in particular is expected to remain constructive. With Janet Yellen’s confirmation vote scheduled for later in the...
Can Municipal Marketing Help Save Your City?
Cash-strapped cities, take note: An untapped source of revenue may be right under your nose. Many private sector businesses are ready and willing to guarantee public funding in exchange for access to public sector assets. The concept of municipal marketing is “as old...
Seeking Salvation in High Yield Munis
Market Outlook Janet Yellen’s confirmation hearings went swimmingly yesterday, allowing 10-year Treasury yields to rally to around 2.70%. Municipals also rallied in tandem, with yields on the long end declining by three basis points. Meanwhile, flows into tax-exempt...
Do Hedge Funds Belong in the Municipal Market?
Market Outlook Traders returning from the Veterans Day holiday are facing a much weaker tone in fixed income as the market continues to digest the implications of last Friday’s blowout employment report. The yields on the benchmark 10-year and 30-year Treasury bonds...
Decoding Economic Indicators Can Help Assess Municipal Credit Quality
Guest commentary by Christopher Mier, Chief Strategist and Economist, Loop Capital Markets We enter the final two months of 2013 with greater uncertainty about the strength of the economy than we have had all year. Given the budget and debt ceiling re-do scheduled for...
Credit Concerns Overhang the Latest Muni Industry Conference
Market Outlook Financial markets have a way of not letting you get too comfortable. Going into this morning’s delayed October employment report, all markets, both equities and fixed-income, were priced for a very weak number (in the 120,000 range), and no Fed taper...
High Yield Muni Supply Perks Up
Market Outlook It’s Election Day and voters around the country will have a say on some key issues with potential impact on municipal creditworthiness. Two gubernatorial elections, in New Jersey and Virginia, will be closely watched by media pundits for their potential...