Tag Archives: municipal

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 […]

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 […]

Rieger Report: Puerto Rico bonds fall after moves to suspend debt payments

The governor of Puerto Rico has moved forward with a bill to suspend debt payments while looking for Washington to help.  The muni market reacted dragging the General Obligation bonds down further.  The S&P Municipal Bond Puerto Rico General Obligation Index has dropped over 3% in April so far and over 5.8% year-to-date. Municipal high yields Read more […]

Rieger Report: Insured municipal bonds remain cheap

Okay, the mono-line insurance companies aren’t going to enjoy this note.  After all, yields of insured bonds should be lower than bonds that are un-insured.  Prior to the great recession approximately half of the municipal bonds outstanding were insured and during that time insured bonds were more in demand than un-insured bonds.  Beginning with the Read more […]

Rieger Report: Puerto Rico Watch

Another way to track the impact of the storm that is Puerto Rico is to look at the municipal bond market in two ways: with and without Puerto Rico.  The new S&P Municipal Bond High Yield ex Puerto Rico Index excludes any bond issued by Puerto Rico.  Puerto Rico bonds are included in the S&P Municipal Bond High Read more […]

Rieger Report: Quietly higher- Municipal bonds continue to shine

A detailed Wall Street Journal article today Markets in 2016: The Year of the Pig clearly shows that many asset classes are continuing to show volatility and negative returns however municipal bonds have been resilient. Tax-exempt investment grade municipal bonds tracked in the S&P National AMT-Free Municipal Bond Index up 1.24% year-to-date and high yield municipal bonds Read more […]