Tag Archives: municipal bonds

Rieger Report: Muni Market’s Moot Reaction to Bond Insurers Credit Watch Negative

So far, the municipal bond market has seen only a modest reaction to the recent negative credit watch being placed on the ratings of several bond insurers. Month to date as of June 12, 2017, the S&P Municipal Bond Insured Index tracking over $148billion in par value of insured bonds has performed in sync with the overall Read more […]

Rieger Report: Illinois G.O.s on the Edge

The recent ratings downgrades by both Moody’s and S&P Global Ratings have placed the State of Illinois general obligation bonds on the edge of becoming junk.  As of this writing, the ratings are Baa3/BBB-/BBB by Moody’s, S&P and Fitch. The fiscal struggle endured by Illinois has indeed been a long one, now yields for Illinois G.O.s have Read more […]

Rieger Report: State G.O. municipal bonds have underperformed

Overall, general obligation bonds have underperformed revenue bonds over the last five years  of low rates.   State general obligation bonds have been the sector that is holding back returns as the lower yield and shorter duration characteristics of these bonds have resulted in muted returns in the up market. While revenue bonds have a larger foot print by par Read more […]

Advisors Managing Interest Rate Risk With Municipal Bond Indices and ETFS

Given that our crystal balls are opaque for predicting interest rates, I thought it would be interesting to continue my interview with two financial advisors about managing interest rate risk in the municipal bond asset class. Matt Papazian is founding partner and CIO at Cardan Capital Partners of Denver, Colorado, and Tom Cartee is a Read more […]

It’s Now Easier to Strengthen Your Core With Municipal Bonds

We all know we should work on and improve our core, but how many of us have the discipline to do it?  I interviewed two financial advisors who are strengthening their core by using municipal bond indices and the ETFs that track them. Matt Papazian is founding partner and CIO at Cardan Capital Partners of Read more […]

Rieger Report: Bond Market Malformation Worsens

As we approach August, the U.S. bond markets have extended their malformed shape despite another round of chatter about the possibility of a Fed hike, this time towards year end.  Subsequent to the June 2nd, 2016 blog Bond Market Malformation, Trouble Ahead? bond yields have compressed further. Demand continues to outstrip the supply of U.S. investment grade Read more […]

Rieger Report: U.S. Bond Safety Valve for Brexit Hangover

Thursday’s Brexit vote and subsequent market reactions have helped push U.S. bonds higher as investors continue to seek shelter from volatility and the uncertainty of what the future holds for the global economy. While the S&P 500 Index has seen a decline of over 2.7% in June, the 10 year U.S. Treasury Bond has returned over Read more […]

Active Versus Passive Through Municipal Bonds

Municipal bond mutual funds gathered USD 2.8 billion in the four-week period ending Oct. 28, 2015, according to the Investment Company Institute, while muni bond ETFs added USD 593 million of inflows in October, according to SSGA.  Despite this low number, at the recent S&P Dow Jones Indices Municipal and Global Bond Forum, various panelists Read more […]

The Rieger Report: Munis Face an Unholy Trio

Three storms are converging on the municipal bond market: supply, interest rates and bad news headlines – a powerful trio of bad news for the municipal bond market. The S&P Municipal Bond Illinois Index is down 1.55% for month-to-date and is the worst performing state index for the month so far.  The index is down 1.16% Read more […]

Energy Related Municipal Bonds Help Push the S&P Municipal Bond Default Rate to a 3-Year High in 2014: 0.17%

In 2014, the default rate of the S&P Municipal Bond Index rose for the first time since 2011, finishing the year at 0.17%. In 2013, the overall default rate fell to 0.107% from 0.144% in 2012. The corporate bond sector of the municipal bond market has historically been one of the sectors where bonds have Read more […]