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June 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:

  • 6/1/12: Vanguard Municipal-Bond Funds Try to Up Their Game. – Morningstar has new analysis on Vanguards Tax Free Muni Funds. They have good words to say and point to high securities quality without pressure to take extra risk in order to get a little more yield.
  • 6/14/12: Detroit Postpones $596 Million Water, Sewer Muni Bond Deal – Cities a political squabble that might drive Detroit into default.
  • 6/15/12: Muni-Bond Investors Should Thank Europe – Investors from around the world are buying United States Bonds. This has in turn helped drive up the value of Muni Bonds. Thank You World! The finances of many municipalities are better than Europes!
  • 6/25/12: The large US bank ratings downgrade – The biggest banks were recently downgraded by rating agencies. These banks back variable rate demand bonds. This type if municipal debt will probably get downgraded causing the value of it to fall. Watch out if you own any.
  • 6/29/12: Stockton, California declares Chapter 9 Bankrupcy – The biggest city in America to file bankrupcy is now Stockton. Their problems were caused by the forclosure prices and millions spent on civic improvement projects. They have tried to make ends meet by laying off police and other city employees. All payments will be suspended to bond holders.
  • 6/29/12: June and July are the peak months when municipal bonds mature. Approximatly, $90 billion will mature and most will need to be reinvested in new bonds. On average, only $24 billion in bonds gets issued every month. Because there is limited inventory, investors will be fighting against eachother for bonds. Becareful and do a lot of comparison shopping.
Municipal Bond News

May 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:

  • 5/7/12: Illinois Bonds Draw Big Interest – WSJ.com. – Illinois sold a whopping $1.8 billion in Municipal Bond debt last week. It had to price them 1.75% higher than the benchmark rate. S&P had previously warned that it may cut Illinois rating from the present A- due to continued problems. It seems like investors are desperate to get any yield these days.
  • 5/6/12: Bond firms’ campaign gifts linked to sales pacts. – Major companies who were competing for California Bond underwriting donated $1.8 million to school districts and ended up getting hired for a majority of the projects. At least they didn’t take them to strip clubs!
  • 5/16/12: Assured Guaranty is slated for a possible credit rating downgrade to single A from Aa3. If they are downgraded, it may lower demand for their insurance from Municipalities. Individual investors may be less willing to buy Muni Bonds due to bonds not being insured. In 2011, 5.2% of new Municipal  Bond issues had insurance. A fairly small number, investors have understood that they need to do their homework on the bonds quality and not value insurance that much.
  • 5/18/12: Cities are getting more savvy with Municipal Bond buyers. Chicago recently had a luncheon to help assure investors that their working hard to make things right. Other cities following the same tack, appear to have calmed investors and perhaps even lowered interest costs that they had to pay.
  • 5/24/12: Treasuries Losing Appeal With Widest Yield Penalty: Muni Credit – Businessweek. – 10-year tax-exempt muni bond yields rose to 108% of those on Federal debt last week, the highest since Dec. 2. This makes municipal bonds more attractive than Treasuries for most people.
  • 5/30/12: MSRB Launches Online Investor Toolkit – MarketWatch – The MSRB has added some very useful tips for individual investors interested in municipal bonds. They are helping to educate individuals on this very confusing marketplace full of hidden risk and markups.
Municipal Bond Mutual Fund News

April 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:

  • 4/17/12: EMMA – MSRB – Municipal Securities Rulemaking Board – Read the Official Statement of bonds and also use the new  EMMA System Alerts feature to stay up to date on any important disclosures.
  • 4/17/12: Safest Return Imperiled as Kansas Considers Tax Cut: Muni Credit – Bloomberg. Kansas and Oklahoma be affected by the proposals to cut income taxes. Both states have an AA+ rating from S&P.
  • 4/27/12: The Jefferson County legal battle is now moving towards resolving whether County Officials can divert money to fix a leaky sewer system instead of paying debtholders. This case will take years to resolve.
  • 4/27/12: New credit default swaps have been expanded for Municipal Bonds. This is increasing on trading volumes and could inject volatility into the bond market.
Individual Bond Municipal Bond News

March 2012 Municipal Bond and Tax Free Mutual Funds News

municipal bonds

This month saw more of news about financial market volatility. The Month’s municipal bond news included:

Municipal Bond Mutual Fund News

February 2012 Municipal Bond and Tax Free Mutual Funds News

municipal bonds

This month saw more of news about financial market volatility. The Month’s municipal bond news included: