Tag Archives: Rieger Report

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 […]

Rieger Report: Why foreign investors like U.S. municipal bonds

A trend that has been catching attention is purchases of U.S. municipal bonds by foreign investors.  A terrific summary was recently published by VanEck’s Michael Cohick and that can be found by clicking here. As that research points out, the Federal Reserve data on foreign investor holdings has jumped to end 2016 at $106 billion.  That 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 […]

Rieger Report: Muni Market’s own “Lunar” Calendar

The municipal bond market is a huge and diverse segment of the bond markets.  Part of the ‘lore’ of the muni bond market has been that the summer months of the year create a natural increase in demand for municipal bonds.  It turns out there is a basis behind this ‘lore’. Using the broadest municipal bond index Read more […]

Rieger Report: Energy Sector Helps Drive Market

The recent oil price rally has pushed the energy sector upward in both the equity and bond markets. In the second quarter so far, the S&P 500 Energy Index (equity) has returned over 9.1% in total return and the S&P 500 Energy Corporate Bond Index has returned over 7.3%.  Meanwhile, the broader indices have seen more modest returns: the S&P 500 Bond Index (the debt Read more […]

Rieger Report: Puerto Rico munis see a bounce (last gasp?)

The rocky road that is the Puerto Rico municipal bond market continues.  Last week’s bi-partisan Puerto Rico Restructuring Bill also referred to as the ‘rescue bill’ has created a reason for the bond market to react positively.  There are ramifications to the ‘rescue bill’ however including potentially eroding bondholder (creditor) provisions for repayment.  Meanwhile, bondholders of the Puerto Read more […]

Rieger Report: Oil State Municipal Bonds Doing Fine

The municipal bond market has been buffeted by pension shortfalls, Puerto Rico, Chicago, Detroit and other news worthy events.  Oil, however, is not yet one of the major forces impacting the municipal bond market.  In February 2016 oil dependent states and their municipal bonds were showing signs of weakening as the price of oil continued its plummet.  Read more […]

Rieger Report: Puerto Rico – Muni Bond Wealth Destroyer

There is gap between the par amount and market value of Puerto Rico municipal bonds that has now broached over $40billion.  While some of this can be accounted for as zero coupon debt, the fall in market value of the S&P Municipal Bond Puerto Rico Index is a startling reminder that credit and political risk can Read more […]

The Rieger Report: Puerto Rico – a 22% Weight on the High Yield Muni Market

As the Puerto Rico saga continues it has created a drag on the high yield municipal bond market. The weight of Puerto Rico debt in the market place as measured the market value of bonds in select indices as of September 29, 2015: S&P Municipal Bond Index (S&P’s broadest municipal benchmark): 1.96% S&P Municipal Bond High Yield 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 […]