October 2012 Municipal Bond and Tax Free Mutual Funds News

municipal bonds

This month saw more of news about financial market volatility. Tax day has come and past. The Month’s municipal bond news included:

  • 10/18/2012 No Wave of Bankruptcies – Moody’s placed 30 California cities’ Municipal Bonds on credit watch for downgrades. Investors should probably avoid these areas:
  1. Azusa
  2. Berkeley
  3. Colma
  4. Danville
  5. Downey
  6. Fresno
  7. Glendale
  8. Huntington Beach
  9. Inglewood
  10. Long Beach
  11. Los Gatos
  12. Martinez
  13. Monterey
  14. Oakland
  15. Oceanside
  16. Palmdale
  17. Petaluma
  18. Rancho Mirage
  19. Redondo Beach
  20. Sacramento
  21. San Leandro
  22. Santa Ana
  23. Santa Barbara
  24. Santa Clara
  25. Santa Maria
  26. Santa Monica
  27. Santa Rosa
  28. Sunnyvale
  29. Torrance
  30. Woodland
  • Moody’s also placed General Obligation Muni Bonds issued by San Francisco and Los Angeles on review for possible upgrades!
  • Keep in mind that Moody’s only rates 95 of the 482 cities in California. Recently Atwater declared a fiscal emergency and may file for bankruptcy.
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September 2012 Municipal Bond and Tax Free Mutual Funds News

municipal bonds

This month saw more of news about financial market volatility. Tax day has come and past. The Month’s municipal bond news included:

  • 9/1/12: Poway Unified School District issued bonds with a high 7.45% interest rate. Oops! They are trying to fix it.
  • 9/17/12: Investors are seeking safety in Municipal Bonds issued by schools. The recent bankruptcy filings in several California towns is causing this affect. School districts unlike Municpalities undergo more oversight. None have defaulted on their bonds.

 

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New California Municipal Bond Offering

municipal bonds

Buy California Bonds.com has a new municipal bond offering available to the public. General Obligation Bonds rated S&P A-. Last offer closes on September 25, 2012.

During an early order period, individual investors like you will have first pick before the large institutions get in. You won’t have to pay an upfront sales commission on the notes you purchase during this period. Buying initial offerings helps individuals reduce markup costs on Municipal bonds.

Revenue anticipation notes are fourth in line to get paid, so they are not as secure as general obligation bonds. Education is number one to get paid. General obligation bonds are number two in line behind schools, so the debt must be paid before most other payments. Payments to local governments are number three in line. Payments for income tax refunds are made after these notes are paid off.

September 25, 2012 Offering

This offer met strong investor interest allowing California to sell 13% more Bonds. The 30 year Municipal Bond yielded 3.72%. This rate is the lowest in California history. Investors liked California Muni’s because investors are nearly front of the line to get paid and California is trying to get their finances in order.

March 21, 2012 Offering

State Public Works Board Lease Revenue Bonds (Tax Exempt) were issued.

  • 1.11% for a 2 year maturity
  • 2.22% for 5yr
  • 3.83% for 10yr
  • 4.72% for 20yr municipal bond

March 1, 2012 Offering

Department of Water Resources Water System Revenue Bonds (Tax Exempt), and General obligation bonds. Rated Aa1 by Moody’s and AAA by Standard and Poor’s.

September 2011 Offering Results

The revenue anticipation notes final pricing-year-old was 0.38% for notes maturing on May 24 and 0.4% for notes maturing on June 26, 2012. Last year these notes yielded 1.5% and 1.75%. A significant drop!

Investors are worried about stock and bond markets and are willing to take his razor thin yields. California delivered an on-time budget on June 30, 2011. Standard & Poor’s these revenue anticipation notes their highest rating for the first time since 2007.

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August 2012 Municipal Bond and Tax Free Mutual Funds News

municipal bonds

This month saw more of news about financial market volatility. Tax day has come and past. The Month’s municipal bond news included:

  • 8/29/2012: Texas recently sold Municipal Bonds at some of the lowest rates they have ever seen. Clearly there continues to be high demand for Munis. One year at 0.225%.
  • 8/21/2012: Warren Buffet is terminating default protection for municipal debt. This may signal that he believes the future of muni bonds may not be rosey.
  • 8/7/2012: Peter Hayes with Blackrock issued a report on municipal bonds and blamed states for having a role in hurting local municipalities by cutting aid and passing on more costs.
  • 8/7/2012: Richard Larkin with HJ Sims reported that municipality bankruptcy is dependent on fiscial measures as well as relationships between states, cities, school districts, and counties. If a state takes an active role, it can help avert problems.
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July 2012 Municipal Bond and Tax Free Mutual Funds News

municipal bonds

This month saw more of news about financial market volatility. Tax day has come and past. The Month’s municipal bond news included:

  • 7/16/2012: San Bernardino, California declared bankruptcy. There may be some criminal negligence “accounting errors” involved in addition to the usual over paying employees and projects.
  • 7/11/2012: Municipal bond inflows hit a record during the quiet July 4th week. Investors are trying to tax-free income and realize that Munis have done well in the last couple of years.
  • 7/6/2012: Stockton has filed for bankruptcy and is trying a similar tactic as the Vallejo by seeking to cut the interest rate paid to their lenders.
  • 7/6/2012: Obama care is levying a 3.8% tax on many investments. Municipal bonds are not affected by this and should become more popular due to this new tax.
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