Tag Archives: municipal bonds

Rieger Report: Municipal Bond ETFs – 10 Years of Growth

The first Exchange Traded Funds (ETFs) tracking municipal bonds were launched in September 2007. Since then the municipal ETF market has grown to 40 ETFs representing over $30.5billion in assets under management. Municipal Bond ETF Market Snap Shot: 40 ETFs all but one represents tax-exempt municipal bonds. There is one ETF tracking taxable municipal bonds. Read more […]

Rieger Report: Munis Show Their Power in Low Rate Environment

The 2017 low interest rate environment has created a wonderful example of the power of tax-exempt bonds. On a nominal return basis, investment grade corporate bonds tracked in the S&P 500 Investment Grade Corporate Bond Index have outperformed tax-exempt bonds tracked in the S&P National AMT-Free Municipal Bond Index. By considering the tax implications, using Read more […]

Rieger Report: Will Pressure on Property & Casualty Companies Impact the Bond Markets?

This Fall has been a difficult time for property & casualty companies.  The fires in Northern California have destroyed thousands of homes and the relentless string of hurricanes have damaged parts of Texas, Louisiana, Florida, Puerto Rico and the U.S. Virgin Islands. If these companies need to sell fixed income assets to offset liabilities they Read more […]

Rieger Report: Munis with Equity Like Returns!

Sectors of the boring municipal bond market have seen equity like returns in 2017. However, it is the downtrodden segments of the muni market in the last several months of 2016 that have created the opportunities to generate these “equity like returns.” The S&P Municipal bond Tobacco Index, down over 6.7% in the last three months of 2016  has recorded a total return Read more […]

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 […]