Given all the turmoil overseas, is it any wonder investors are rediscovering municipals for their attractive risk-adjusted return characteristics? …The muni market’s improved technicals have helped Puerto Rico paper weather the latest fear-mongering efforts by the nation’s media … And, how might the latest developments in the Detroit bankruptcy case impact bondholders?
Month: January 2014
Tri-State Transportation under the Spotlight, in More Ways than One
Market Outlook Call it the “Sneaky Muni Rally.” If last year saw a perfect storm of negative technical and fundamental factors, the situation seems to have reversed in the new year, at least thus far. Since the holidays, building on the firmer tone in Treasuries and...
Municipal Bond Insurance, Then and Now
About a week ago, I had the opportunity to hear Sean McCarthy, CEO of the fledgling Build America Mutual, speak about the outlook for muni bond insurance. That got me thinking about the profound impact financial guarantors have had on our industry over the last few...
Municipal Bond Disclosure Continues to Evolve with GASB Statements 67 and 68
by guest contributor Michael J. Ross While municipal bond market participants have been focused on distressed credits - Puerto Rico, Detroit, Jefferson County, Alabama, and others - a new reporting standard is garnering industry attention. The Governmental Accounting...
Muni Supply Returns amid Favorable Market Technicals
The bond market’s enthusiastic response to the unexpectedly weak December employment report is starting to wane as more recent economic releases continue to point to strong growth in the fourth quarter of 2013. As a case in point, December retail sales were reported...
Munis off to a Good Start, Even as Employment Number Confounds
The jobs data giveth and the jobs data taketh away. Once again, the closely-watched monthly indicator of employment growth in the US caught all market observers leaning the wrong way. As shocking as the November number was on the high side, the December report turned...
The Case for Continued Tax Exemption of Muni Bonds
As Congress debates the future of tax exemption for municipal bond interest, one industry professional says it’s time for those whom it will directly affect - state and local government officials, taxpayers and citizens - to speak up. In a recent report entitled, “A...
A Frigid Start to the Year, but the Heat’s on Puerto Rico Again
Barely a week into the New Year, the biggest market story so far has been the weather, starting with last weekend’s snowstorm in the Northeast and continuing with the deep freeze currently gripping the eastern half of the country. The financial markets are also starting the year on a frigid note. Plus, what would the New Year be without more negative headlines on Puerto Rico?
Puerto Rico Set to Gamble on Market Access
If the first two trading days of 2014 are any indication, credit concerns will continue to weigh heavily on the tax-exempt market. Perhaps more importantly, the industry’s regulators are now also keenly aware of the changing credit landscape in munis. Already, the new...
Risks and Opportunities in Munis in 2014
As we close out an extremely eventful year in the municipal market, let’s indulge in a little crystal ball exercise and try to see what the New Year has in store for us. For muni investors, 2014 should bring a fresh mix of risks and opportunities. It’s fair to say...