Education Municipal Bond

May 6 – May 13, 2011 Municipal Bond and Tax Free Mutual Funds News

municipal bonds

This week (May 6, 2011 – May 13, 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:

  • Banks not renewing a state or local government’s letter of credit, was a big concern. 85% were renewed, replaced in the first quarter of 2011, a very good sign. If banks failed to sponsor these letters of credit, a major crisis would possibly occur. $50 billion worth of letters of credit expire in Q2, Q3. (WSJ.com)
  • FINRA has an investor alert on municipal bonds. Most of the information has been covered on our site, but is extremely useful for individual investors. (FINRA)

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