This month saw more of news about financial market volatility. The Month’s municipal bond news included:
- 2/2/12: Muni Rally Drives Yields Near Record Low as Demand Rises Amid Supply Slump – Bloomberg – Municipal bonds continue to increase in value, causing their yields to fall to near record lows. The main reason for this is lack of new supply.
- 2/08/12: Another Year of Fear for Municipal Bonds – WSJ.com – Even though 2011 was a banner year for muni bonds, the same problem persist 2012. Falling credit quality, default risk, and low supply. Community development districts, assisted living, and independent living remain the largest default areas.