MuniNet Guide Archive
Window on Financial Transparency in Texas Opens Wider
Financial transparency is not a new concept for Texans. The Texas Comptroller’s website, aptly called Window on State Government, has been providing information on state revenue, expenditures, taxes, and the state economy since transparency went mainstream. Now, the...
San Bernardino Bankruptcy Returns to Muni Headlines
As the municipal market continues to digest - and decipher the implications of - Detroit’s Chapter 9 bankruptcy filing, San Bernardino has been awarded bankruptcy protection by a federal judge. The ruling comes a little over a year after San Bernardino filed an...
More Headline Risk for Munis
Market Outlook The potential U.S. strike against Syria has done what two weeks of Egyptian political turmoil failed to accomplish: bring the flight-to-quality bid back to the Treasury market. After testing two-year highs last week, the yields on the 10-year and...
The Bob Filner Effect in Munis
Market Outlook Yesterday’s three hour trading glitch at the NASDAQ provided the markets with a welcome respite from their obsessive Fed-watching behavior. The minutes of the FOMC released on Wednesday failed to provide further clarity as to the eventual timing of...
All Eyes on Detroit: What Happens to Unfunded Pension Liabilities When a Municipality Files for Bankruptcy?
While Detroit’s recent Chapter 9 municipal bankruptcy filing has certainly posed a variety of challenges for the City’s citizens and creditors, it may also serve a greater social benefit. Participants in the Detroit bankruptcy are presently considering the legal and...
Less is More: Lessons Learned from Detroit Bankruptcy’s Unfunded Pension Battles
Participants in the Detroit bankruptcy are presently considering the legal and metaphysical question of whether a state constitutional provision can mandate that, unlike other contracts, unfunded pension obligations must be paid in a municipal bankruptcy without any impairment or reduction. Unfortunately, bankruptcy is the land of broken promises and impaired contracts but, regardless of the outcome of the legal debate, there may be practical answers emanating from the case for all those who are watching Detroit.
A Look at Bond Insurers’ Exposure to Muni Credit Trouble Spots
Which bond insurance companies carry the greatest exposure to municipal credits that have been making recent headlines … Puerto Rico, Detroit, Chicago
More Budget Voodoo from Puerto Rico?
Market Outlook Global financial markets are starting to get cold feet as the start of Fed tapering efforts draws near. It certainly doesn’t help that recent economic data have been quite firm. Housing starts, for instance, have yet to be affected by higher interest...
Odd-Lot Muni Traders Get Some Love
Market Outlook After last week’s relatively subdued activity level, the Treasury market is gearing up once again for a slew of key economic releases this week. If the recent strength of the dollar is any indication, the market is looking for much firmer economic...
Can Muni Investors Still Rely on the Unlimited Tax G.O. Pledge?
Market Outlook The dog days of summer are upon us and the Treasury market appears to be stuck in a five basis points or so trading range after this week’s relatively uneventful auction. The benchmark 10-year and 30-year yields closed at 2.59% and 3.67% last night. In...
A Bounty of Relative Values on this Week’s New Issue Calendar
This week’s $8 billion new issue calendar will have a little something for everybody. Of course, the issue most likely to capture the market’s attention this week will be the $600 million Puerto Rico Electric & Power Authority (PREPA) deal.
Puerto Rico to Test Post-Detroit Muni Market
Market Outlook Going into the employment report this morning, the U.S. fixed-income market remains under pressure as much of the economic data released this week have exceeded market consensus. The FOMC’s decision to maintain the status quo on Wednesday did provide...
Price Discovery Challenges in the Muni Market
Market Outlook This is certainly not the kind of week that bond traders want to step in front of: between the monthly meeting of the Federal Open Market Committee (affectionately dubbed the “Federal Open Mouth Committee” by some of our friends in the business) and...
After Detroit, Is Chicago Next?
Market Outlook Just when we thought 10-year Treasuries had found some degree of support around the 2.50% level, fresh new supply and hints of economic stabilization in Europe have brought on renewed weakness this week. Traders are also starting to focus on the July...
Which U.S. Cities Boast the Best Hospitals?
Detroit is getting a lot of negative press lately. But here’s a bright spot for the Motor City: It is one of five cities deemed to be home to the greatest number of top hospitals in the nation, according to the 2013-14 U.S. News & World Report...
Post-Detroit Muni Market Looking for Direction
Market Outlook With his remarks at last week’s Congressional hearings, Federal Reserve Chairman Ben Bernanke finally accomplished what he could not back in June: convince global financial markets that tapering is not the same as tightening and that any tapering...
Detroit Takes the Municipal Bankruptcy Plunge
Updated July 23, 2013 - Detroit has been known for many things over the years ... cars, music, and now municipal bankruptcy. On July 18, the City of Detroit became the largest city to file for Chapter 9 municipal bankruptcy protection. James Spiotto, a...
Kate’s Baby Upstaged by Detroit Bankruptcy
Detroit has replaced Jefferson County, Alabama as the largest municipal bankruptcy in U.S. history to date. The filing follows a month of intense negotiations with various classes of creditors. Of course, just because Motown wants to declare bankruptcy doesn’t mean it automatically can.
A Grand Debut for the Year’s Largest Muni Deal
With temperatures rising across the nation, the municipal market too is heating up. This week’s muni new issue calendar is expected to top $9.65 billion of new volume … Accounting for much of that supply is a $2.9 billion deal from the Grand Parkway Transportation Corp in Texas
Muni Fund Outflows Continue Even As Tax-Exempt Market Recovers
Market Outlook “The overall message is accommodation.” This was the latest policy clarification from Fed Chairman Ben Bernanke, a day after the release of the minutes of the FOMC meeting showed deep dissension within the Fed’s ranks as to the timing...
Are Maps Becoming Extinct?
Can online maps and GIS tools replace wall maps and atlases?
Muni Supply Returns After Holiday Week
Market Outlook This has been the kind of market that tramples even the most astute contrarian investors. Those who saw value restored in the bond market after May and June’s dramatic selloff barely had time to digest their holiday meal before they were faced...
Summer Sitings: Road Trips, Picnics in the Park, and … Travel Taxes
by Mardee Handler, managing editor Summer travel season is in full swing. Depending on where your road trips lead, you may be making a larger contribution to your destination city’s coffers than you realize. Earlier this year, Pew Stateline featured an article...
After the Deluge: Munis Regroup Before Payroll Data
Market Outlook Is it just sheer exhaustion from last week’s extreme volatility? Or is it just the calm before the next bout of economic data-induced market convulsions? Perhaps market participants are already looking ahead to a weekend of backyard grilling?...
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...