Browsing Tag

Vanguard mutual fund

Mutual Fund News

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 Mutual Fund News

August 22 – 29, 2011 Municipal Bond and Tax Free Mutual Funds News

municipal bonds

This week saw more of news about the major financial market choppiness. This may be a good time to adjust your asset allocation. The Week’s municipal bond news included:

  • Vanguard – Vanguard California Intermediate-Term Tax-Exempt Fund Investor Shares. Vanguard recently released their semi-annual report. Some interesting tidbits include being prepared for heavy redemption by dedicating a portion of fund assets to very liquid holdings.
  • Higher rated bonds outperformed lower rated bonds.
  • The city of Stockton is a possible bankruptcy candidate.
  • Part of the decision of buying a bond is how easy it will be to trade.
Municipal Bond Mutual Fund

Municipal bond mutual funds Falling Fast

Municipal bond mutual funds have been Falling Fast the last week or so. On Tuesday, November 16, 2010 the price of several Vanguard Municipal bond funds fell over 1% apiece, a huge drop.

Municipal bond ETF’s have fallen even faster.

Let’s hope the selling end soon. In retrospect the selling stopped around November 18 and some small gains started then. It looked like the market finally digested all the news and found the temporary floor.