Market Outlook With the new issue calendar continuing its recent seesaw pattern, muni market participants are left to ponder two significant events this week: the FOMC meeting and the reportedly “balanced” budget announcement from the Commonwealth of Puerto Rico. The...
Month: April 2014
Puerto Rico’s Historic “Balanced” Budget
As expected, PR Governor Padilla last night announced a “balanced†budget for fiscal 2015, the first in 20 years, featuring about $1.4 billion in public spending cuts, equal to roughly 14% of the FY 2014 budget.
Five Handy Online Calculators for Municipal Research
by Mardee Handler, managing editor We’ve come a long way from the abacus. The online world is not flat, which continues to increase the power of the Internet. Certainly, we can access vast amounts of information online. We can also, in a growing number of examples,...
Puerto Rico: Bond Purgatory and Tax Haven?
Market Outlook A range-bound Treasury market has helped municipals maintain a steady, positive tone over the past few weeks. However, the recent stretch of outperformance has also eroded the relative value of the tax-exempt sector, leaving it vulnerable to a...
Tobacco Bonds and Fiscal Gimmickry
April 15th is always a special date for us muni geeks, particularly those of us who are focused on the high yield tax-exempt market. Aside from serving as a reminder of the value of tax-exempt income, Tax Day is also the day tobacco companies make their annual Master...
Bond Insurers’ Breakthough Settlement in Detroit
Having outperformed Treasuries over the last two weeks, the municipal bond market is in a state of limbo currently, as cross-market valuations are no longer compelling. A modest backup in yields may actually be a welcome development at this point.
Can a TV Show Impact a City’s Economy?
In the broadest sense, cities that provide the landscape for a television series – or a movie – benefit in both tangible and intangible ways. The increased publicity for and awareness of a city – particularly if portrayed in a positive light – often lead to concrete benefits such as increased tourism, greater economic development opportunities, and perhaps even an influx of residents. Other tangible economic rewards come as a result of on-location filming and production.
After a Great Quarter, an Uncertain Rate Outlook for Munis
Market Outlook After her “failure to communicate” last week, Fed Chairwoman Yellen went out of her way on Monday to clarify that no rate increase is in the cards, given the current dismal state of the job market. Her remarks did lead to a partial reversal of the...