Municipal Bond News

July 2012 Municipal Bond and Tax Free Mutual Funds News

municipal bonds

This month saw more of news about financial market volatility. Tax day has come and past. The Month’s municipal bond news included:

  • 7/16/2012: San Bernardino, California declared bankruptcy. There may be some criminal negligence “accounting errors” involved in addition to the usual over paying employees and projects.
  • 7/11/2012: Municipal bond inflows hit a record during the quiet July 4th week. Investors are trying to tax-free income and realize that Munis have done well in the last couple of years.
  • 7/6/2012: Stockton has filed for bankruptcy and is trying a similar tactic as the Vallejo by seeking to cut the interest rate paid to their lenders.
  • 7/6/2012: Obama care is levying a 3.8% tax on many investments. Municipal bonds are not affected by this and should become more popular due to this new tax.

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