Municipal Bond

April 29 – May 6, 2011 Municipal Bond and Tax Free Mutual Funds News

municipal bonds

This week (April 29, 2011 – May 6, 2011) saw more of news about the US government’s deficit battles. Tax-free Mutual funds saw continued outflows. The Muni Market has slowly moved back up, perhaps because of a lack of supply. This may be a good time to adjust your asset allocation. The Week’s municipal bond news included:

  • Underfunded Unemployment Funds Put States at Risk. We have heard local news reports covering this in the past. Another area that will cause financial problems for some states. (Bond Buyer)
  • San Francisco wasted $120 million on a bad interest rate swap deal with Ambac. Be sure to look for other municipalities that may have similar issues. (SF gate)
  • Counties and school districts could have broad authority to propose their own personal income tax and other taxes under a proposed bill in California. While no one likes you taxes, this type of aggressive action shows that the politicians are serious about closing the gap. (SF gate)
  • Standards and Poor actually downgraded and then removed their rating altogether on some of DeKalb County, Georia’s municipal bonds. This is a good sign that the major ratings agencies are being more proactive. (ajc)

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