The financial crisis of the last four years has damaged the financial conditions of cities and states—and municipal bond insurers. In our view, this has increased the value of research and undermined individual investors’ classic approach to municipal bonds: laddering. My colleague Guy Davidson explains why, below and in the Reuters muniland blog. (more…)
Today’s low interest rates and the uncertainty around the timing of future increases have convinced some bond investors to invest in shorter-term bonds and cash. But yield is just one of several sources of bond returns that investors can pursue, as my colleague Terry Hults explains below. (more…)
You may have seen an article on the front page of The New York Times business section on December 23, “Bankruptcy Filing Raises Doubts About a Bond Repayment Pledge”. In our view, it is inflammatory. Below, my colleague Joseph Rosenblum offers a more balanced approach. (more…)
A reader who saw our recent article, “Navigating Rocky Municipal Bond Markets,” asked whether any essential service bonds were downgraded this year, and suggested that municipal bond issuers might load up, or even hide, excess debt in its water districts. Here’s the reply from Joseph Rosenblum and our municipal credit team. (more…)
Despite the uncertain impact of recent difficult economic conditions on tax collections, we see significant opportunity to add value in the US municipal bond market. Below, my colleague Michael Brooks reviews where we see the best rewards for risk. (more…)
In response to our recent article on the Jefferson County bankruptcy, a reader asked “What and how much will be the settlement? Who pays and who gets the pain?” My colleague Michael Brooks replies below. (more…)
Yesterday, Jefferson County, Alabama filed for bankruptcy—a move we had long anticipated. The County’s $4.2 billion in debt makes this the largest municipal bankruptcy in US history. (more…)
While renewed concerns about economic growth cloud the outlook for US state and local tax collections, we don’t envision a rash of municipal bond defaults if tax collections are lower than expected. Here’s a recent report from my colleague Guy Davidson.