Municipal Bond News

August 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:

  • 8/29/2012: Texas recently sold Municipal Bonds at some of the lowest rates they have ever seen. Clearly there continues to be high demand for Munis. One year at 0.225%.
  • 8/21/2012: Warren Buffet is terminating default protection for municipal debt. This may signal that he believes the future of muni bonds may not be rosey.
  • 8/7/2012: Peter Hayes with Blackrock issued a report on municipal bonds and blamed states for having a role in hurting local municipalities by cutting aid and passing on more costs.
  • 8/7/2012: Richard Larkin with HJ Sims reported that municipality bankruptcy is dependent on fiscial measures as well as relationships between states, cities, school districts, and counties. If a state takes an active role, it can help avert problems.

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