Municipal bond prices continued their upward move during May resulting in lower yields across the maturity spectrum at month end. A calmer tone to our marketplace has set in over the past two months as much of the selling hysteria earlier in the year has subsided. Bullish market emerges in calm after the storm This […]
The municipal bond market through the first three months of 2011 was particularly choppy, culminating in March with one of the most muddled trading environments we’ve experienced in quite some time. To discuss March’s performance, it’s important to examine the events that led us to this point. As a result of a favorable price-to-yield relationship, […]
Municipal bond yield indices moved lower during the month, continuing the trend established during the second half of January. Factors contributing to the ongoing rally include the relative dearth of new issue supply, a quiet market overall and an abatement of the deluge of bond fund redemptions of prior months. Generally, investors continued to reach […]
Municipal bond yields ended the month at higher levels than where they began the month, resulting in a negative monthly total return number for most portfolios. This decline in portfolio value was more pronounced on higher duration portfolios and bond funds as you would expect. The higher municipal bond yields resulted from: The continuing sell-off […]
It’s important to frame the developments in the broader financial markets over the last six to twelve months before discussing the municipal market’s continued ability to absorb issuer-specific credit events. Roughly a year ago, the United States’ triple-A credit rating was downgraded by Standard & Poor’s. This triggered one of the most pronounced and initially […]
There have been three municipalities that have either filed or have voted to approve filing bankruptcy in California in the past year: Stockton, Mammoth Lakes and most recently, San Bernardino. Stockton and San Bernardino went bankrupt due to the “usual” circumstances, they overspent or over-promised services and benefits to their citizens and employees (current & […]
Score one for bondholders. A federal judge ruled in June that Jefferson County, Alabama could not reduce debt payments while in bankruptcy in order to spend more of the system’s net operating revenues on its aging sewage system. County’s Orwellian claim at odds with municipal market In its losing argument, the county claimed future capital […]
Renewed questions as to the health of the European Economic Union coupled with news of slowing growth in China, India and here at home sparked a strong rally in the Treasury market this past month. Treasuries rally more pronounced While this may read like the same “Treasuries rally” market commentary from March or April, the […]
Bond prices rose during the month and bond yields declined from March end of month levels. The 10 year taxable Treasury bond ended the month yielding approximately 1.95%. The price rally was particularly felt in the non-taxable municipal bond sector. A manageable new issue supply was easily absorbed by available cash balances, as well as […]
Bond yields on both U.S. Treasury and municipal bonds were on the rise in March and ended the month at higher levels than the month before. The 10-year taxable Treasury bond yielded 2.21% at month end, up from 1.97% on February 29th, but down from mid-month levels of 2.37%. Municipal bond yields increased similarly in […]