MuniNet Guide Archive
Mining the Web: Public Pension Reform in 19 Cities
The U.S. Conference of Mayors recently released a report describing actions taken by several U.S. cities “to reform unsustainable pension plans in which they are participants or which they administer for themselves.” The report, entitled City Approaches to Public...
Illinois Tests the Market’s Mettle
Faced with a buyers’ strike, the last thing the muni market needed was a surge in supply. … Interestingly, the largest long-term issues on this week’s docket are all “high yield†names which may not be particularly rate-sensitive. Illinois stands to be the most heavily penalized under current market conditions.
Top Cities for Job Satisfaction
People who work in the Bay Area tend to report the highest job satisfaction, according to a new report by Glassdoor, an online jobs and career community that offers an inside view of companies. Topping the Glassdoor Employment Satisfaction Report Card are San Jose...
What’s Next for the Muni Market?
With both bonds and equities selling off dramatically, there weren’t many safe places for investors to hide this week. From here on, failure to do your homework on the creditworthiness of your muni holdings may result in actual losses, not just relative underperformance.
The “Full Faith and Credit” Pledge Under Attack
As one major municipal entity – Jefferson County, Alabama – tries to exit bankruptcy proceedings, another one appears to be on the road to Chapter 9. The City of Detroit entered the annals of municipal default on Friday by skipping the coupon payments on certain of its debt, as part of the debt restructuring plan it presented to creditors.
The Muni Market at a Crossroads
Market Outlook As equity markets around the globe swooned, the bond market has finally caught a bid, if only for the time being. Apparently, even far-flung emerging markets have indirectly benefited from the Federal Reserve’s liquidity injections and they are now...
Key Considerations for Public Pension Reform
Evolving workforce demographics and long-term budget issues pose the biggest challenges to public sector pension reform, according to a new report released by the TIAA-CREF Institute and the Rockefeller Institute of Government. The report, entitled, Public Sector...
Detroit Continues to Grapple with Prospect of Municipal Bankruptcy
(Updated June 21, 2013) “Today’s a big day for Detroit creditors as they’re scheduled to meet with and presumably get the bad news from Emergency Manager Kevyn Orr,” said Triet Nguyen, in his Muni Bond Insights column, The Muni Market at a Crossroads, dated June 14,...
Another Look at Muni Recovery Rates
[Note to Readers: This week’s columns were delayed due to vacation time and graduation season. Starting next week, MuniBond Insights will be published on Tuesday and Friday.] Market Outlook In the aftermath of last Friday’s better-than-expected payrolls number, the...
Putting the “Moral” Back into “Moral Obligation Bonds”
What exactly is a “moral obligation pledge?†How strong is it, is it legally enforceable – and how will it play out in the case of the State of Rhode Island’s 38 Studios?
Mining the Web: State and Local Government Workforce Trends
The outlook for state and local government employment appears to be a bit brighter than in recent years, according to a recently released survey by the Center for State and Local Government Excellence and the International Public Management Association for Human...
Will the Bond Market Dodge the QE2 Asteroid?
Market Outlook Last Friday, a chunk of space rock large enough to wipe out civilization sailed past our planet harmlessly. Its name? Asteroid 1998 QE2 (It’s true; you just cannot make this stuff up). It was a fitting end to a week which saw the bond market...
Despite Notable Improvement, California Metro Areas Still Face Unemployment Challenges
The Golden State is home to the two metro areas posting the greatest decline in unemployment rates among large metro areas in April 2013, compared to a year earlier. The unemployment rate fell by an even two percentage points in both the Riverside-San...
The Real Risks in Munis
Market Outlook A strong Consumer Confidence number brought the bond bears out of the woodwork on Tuesday, driving Treasury yields to a 12-month high. The 10-year and 30-year Treasury levels hit daily closing highs of 2.15% and 3.31%, respectively, before settling down...
Only in Munis
Market Outlook As the financial markets return from the holiday and continue to digest the “Fed tapering” outlook, the focus will now shift to the next employment report on June 7th. The tax-exempt new issue calendar will be quite light in this holiday-shortened week...
Do Credit Ratings Matter Anymore?
Market Outlook The market didn’t have to look very far for clues about the Fed’s “tapering” intentions after all. Chairman Bernanke tackled the subject head-on yesterday at a Congressional briefing and gave the markets (both stocks and bonds) a...
Look What They’ve Done to Tax Exemption, Ma
For now, the municipal bond market is taking some degree of comfort in the projected $60 billion in re-investment flows coming in May and June. There is no guarantee, of course, that all that cash will find its way back into munis
Motown Breakdown
Market Outlook The Treasury market finally found some degree of support this morning after a four day losing streak that took yield levels to a two month high. While the economic data, here and abroad, continue to be mixed, fixed-income market participants have become...
State Governments Ready to Reposition Shadow and REO Inventories
by guest contributor, Peter Fugiel, Ph.D.The current housing price recovery in U.S. housing markets is being blocked from any full recovery by the continuing huge lender inventories of late and very late home loans. While the upscale and severely distressed...
Puerto Rico’s “Highway to the Danger Zone”
Puerto Rico bonds are back in the headlines, and not in a flattering way. The Commonwealth’s current fiscal crisis has blurred the hierarchy among PR issuers, but we believe sharp credit distinctions will return once the crisis is resolved
State Tax Revenues Continue to Experience “Sluggish Growth”
Despite growing state tax revenues over the past three years, states continue facing the fiscal challenges created by the Great Recession, explains Lucy Dadayan of the Rockefeller Institute of Government.
From School Districts to Charter Schools and Beyond
So far this week, the tax-exempt market has just been drifting without much conviction. Blame it on the Dow soaring to a new record high of 15,000. Blame it also on the fact that most tax reform proposals floating around in political circles would curtail, in varying...
The Oracle Dumps on Bonds and Other Cautionary Tales
Strong employment numbers beat expectations … Will Illinois reform its pension system? … Clarifying the treatment of gross revenue pledge versus net revenue pledge in Chapter 9 municipal bankruptcy proceedings
Public Service Recognition Week Provides a Way to Say Thanks to Government Employees
From free transit rides in Topeka to an essay contest in Houston, federal, state and local government employees are acknowledged for their contributions during Public Service Recognition Week.
2013 NFMA Awards Recognize Contributions to Municipal Bond Industry
The National Federation of Municipal Analysts (NFMA) handed out its annual industry awards at its Annual Conference, which was held in San Diego this past week. The awards are given to individuals or entities that “further the goals of the NFMA for the enhancement and...