Tag Archives: municipal

Rieger Report: Municipal bonds in 2017?

A look back may be a telling way to view municipal bonds in 2017. The modest total return of the S&P Municipal Bond Index (0.77%) in 2016 masked an atypical year of volatility for the normally staid market place.  During the year, municipal bonds enjoyed being one of the ‘risk off’ asset classes and as low Read more […]

Rieger Report: Could the long end be range bound?

The long end of the yield curve for U.S. corporate and municipal bonds could be held range bound over the next several months as there are various forces at play. Drivers for yields to rise: Inflation expectations: actual and anticipated inflation can impact bond holders and hits the yields of long term bonds the hardest. Infrastructure programs: Read more […]

Rieger Report: Retail Bond Transaction Costs Show Improvement

Tracking the mark up on retail size bond transactions can be a tricky effort particularly as mark ups have not be disclosed in the past.  By comparing trades of bonds of similar characteristics we are able to isolate and calculate estimated transaction costs published in our study “Unveiling the Hidden Costs of Retail Buying & Selling”. The Read more […]

Rieger Report: “Belly of the Curve” Good for Muni & Corporate Bonds

Through October 3rd, the S&P Municipal Bond Index has returned 4.23% year-to-date and the S&P 500 Bond Index has returned 8.97%.  The 7 – 10 year maturity range has outpaced the overall benchmarks in both cases. The average yield of bonds in the S&P 500 7-10 Year Investment Grade Corporate Bond Index has fallen by 94bps Read more […]

Rieger Report: High Yield Domination

High yield bonds have been marching along and putting up returns that are dominating the investment grade bond markets. U.S. junk bonds continue to have no stink to them as demand for yield far outweighs the supply and seemingly the credit risks associated with these bonds.   The bonds of larger entities tracked in the S&P 500 Read more […]

Rieger Report: Insured Munis Begin to Show Value

The S&P Municipal Bond Index has recorded a 4.21% year-to-date total return for the first three quarters of 2016 lagging the taxable corporate bond market returns of nearly 9% as tracked by the S&P 500 Bond Index.  Some segments of the municipal bond market are contributing more than others: Local general obligation bonds have out performed Read more […]

Rieger Report: Mismatch – State Pension Short Falls & Muni Bond Market Returns

S&P Global Ratings released a report on September 12th 2016 U.S. State Pensions: Weak Market Returns Will Contribute to Rise in Expense.  Importantly, the report identified the five worst and best funded state pensions.  You might think that an underfunded pension liability would mean the market would avoiding the municipal bonds issued by or within those Read more […]

Rieger Report: Muni Bonds – the States Leading and Lagging 2016

The municipal bond market tracked by the S&P Municipal Bond Index has seen a 4.11% year-to-date return.  Investment grade municipal bonds tracked in the S&P National AMT-Free Municipal Bond Index have seen a 3.95% return. What states are leading the pack?  The answer includes some of the states that have been performance drags in the past.  Municipal Read more […]

Rieger Report: Muni G.O.’s or Revenue Bonds in 2016?

The debate over which sector of municipal bonds, general obligation bonds (G.O.’s) or revenue bonds can provide a better return is a constant one.  So far in 2016, the S&P Municipal Bond Revenue Index has outperformed verses the S&P Municipal Bond General Obligation Index. Peeling the onion back a bit may help provide more insights. In general, revenue Read more […]

S&P U.S. High Quality Preferred Stock Index: A Venn of an Index

Similar to the Venn diagram in which the overlapping section of circles is the focus, the S&P U.S. High Quality Preferred Stock Index is designed to measure preferred securities that are constituents of both the fixed-rate and investment-grade preferred stock indices. Exhibit 1: S&P U.S. Preferred Stock Indices Hierarchy The weight of cumulative preferred stocks Read more […]