Tag Archives: J. R. Rieger

A Battered Municipal Bond Market Enters 2014

Since the S&P Municipal Bond Index was launched in 2000 it never has had two years in a row of negative returns.  However, a new year begins with all the uncertainty and expectations of any other year.  Municipal bond funds are entering 2014 following a long string of monthly cash outflows indicating that retail investors Read more […]

Plot Thickens for Puerto Rico Bonds

The story plot thickens for Puerto Rico bonds as Moody’s placed bonds issued from Puerto Rico under review for a possible downgrade to below investment grade.  Selling pressure continues to mount impacting the market.  The S&P Municipal Bond Puerto Rico Index has seen a negative total return of 19.45% year to date and the weighted Read more […]

Defaulted Municipal Bonds Outperform!

Hard to fathom isn’t it!  With 2013 municipal bond default and bankruptcy headlines casting a dark cloud over the municipal bond market, defaulted bonds actually have been up.  The overall performance of defaulted municipal bonds during this time has been positive as the S&P Municipal Bond Defaulted Index has returned a positive 2.79% year to Read more […]

High Yield Munis Burned by Tobacco Bonds

Tobacco settlement  bonds tracked by the S&P Municipal Bond Tobacco Index are down nearly 9% year to date as yields have risen by over 255bps as the credit risk of these long duration bonds is questioned.  Recent arbitration results have been positive but uncertainty over future disputes and tobacco consumption are pulling these long duration Read more […]

High Quality Munis Held Back by Puerto Rico Storm

The S&P Municipal Bond Puerto Rico Index is down over 16% since mid-year and over 20% for the last 12 months.  The ‘storm’ has continued into October as the index is down 2% month to date. The Puerto Rico bond market debacle weighs on the rest of the municipal bond market despite its relative high Read more […]

Jekyll & Hyde: The U.S. Preferred Stock Market

Preferred stocks have a split personality, part equity and part bond. The bond characteristics of preferred stock has, at least for the time being, become the ‘Mr. Hyde’ of the asset class.  The high dividends that preferred stock owners enjoy can be compared to future interest payments of bonds. Like bonds, the prospect of the Read more […]

Municipal Bonds Bounce Off Bottom

The US Municipal bond market has bounced off its recent bottom even as two anchors continue to weigh it down: Puerto Rico and tobacco settlement bonds. Investment grade tax-exempt bonds tracked in the S&P National AMT-Free Municipal Bond Index have seen a 2.32% positive total return since it’s year to date low on September 5th Read more […]