This month saw more of news about financial market volatility. The Month’s municipal bond news included:
- 12/01: U.S. municipal bond funds see outflows -Lipper | Reuters. – Muni bonds has outflows for the first time in 7 weeks. Guess people feel more comfortable with equities with a rally.
- 12/08: Bond Buyer’s Dilemma – WSJ. – Mr. Malkiel, Well respected author of “A Random Walk Down Wall Street”, wrote an opinion piece to help fixed income investors who are receiving a lot less in interest these days. He recommended municipal bonds including revenue bonds from stable and growing sources. One example was the New York, New Jersey port authority bonds currently yielding 5% tax free.
- 12/15: MBIA and Morgan Stanley Settle Bond Fight – Bond insurer MBIA is slowly settling legal fights over real estate guarantees. They insure muni bonds, so lets hope they come out of this without going under.
- 12/16: Detroit is on credit watch for downgrading by ratings firms.
- 12/22: Muni Bonds: A Disaster That Wasn’t – Munis have returned 10.2% this year, pretty good, and better than most areas.
- 12/31: Muni Bond Indictment – Reinvesting municipal bond proceeds was an area setup with kickbacks and bid rigging that involved five banks, Bank of America Corp., UBS AG, JPMorgan Chase and Co., GE Funding Capital Market Services Inc. and Wachovia Bank, since acquired by Wells Fargo and Co.