Municipal Bond News

May 20 – May 27, 2011 Municipal Bond and Tax Free Mutual Funds News

municipal bonds

This week (May 20 – 27, 2011) saw more of news about the US government’s deficit battles. A quiet week ahead of the Memorial Day holiday. This may be a good time to adjust your asset allocation. The Week’s municipal bond news included:

  • School District, Bank in Swap Clash – A State College Area School District in Pennsylvania is being sued over a interest rate swap. This is becoming more common with other municipalities who gamble with interest rate swaps and probably shouldn’t have. (WSJ.com)
  • Meredith Whitney Trips Over Her Muni Default Tale: Joe Mysak – More musings on municipal bonds favorite poster lady. Make a few bondholders suffer, and some people may think you’re a hero. Raise taxes, and lose the next election. (Washington Post)
  • State tax revenue increases by 9.1% – States are collecting more revenue than anticipated, which is a good thing. Most of the growth came because of strong wages and retail sales, and not higher tax rates. Local governments depend more on property tax, so they are less likely to see much of a bump. (WSJ.com)

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1 Comment

  • Reply
    jay northrup
    June 14, 2011 at 8:01 am

    would lke the name of a good book detailing the municipal bond market during the great depresion,,jay

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