Tag Archives: munis

The Rieger Report: Municipal Bonds Hold On but Puerto Rico Sinks to New Depths

Data as of June 26, 2015: The investment grade municipal bond market has managed to hold steady with a modest negative return of -0.37% through June 26th 2015.  Investment grade corporate bonds have returned -1.13% during the same period. High yield municipal bonds have been pulled downward by Puerto Rico but have still managed to 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 […]

Show Me The Muni

The S&P Municipal Bond Puerto Rico Index was the only state or territory index to finish the quarter in the red, down 1.25% with its yield to worst at 7.89%. Yields continue to rise as investors become more skeptical about Puerto Rico’s ability to fulfill obligations to their creditors. The S&P Municipal Bond Puerto Rico Read more […]

The Rieger Report: 2015 Headwinds & Tailwinds for Municipal Bonds

As we near the end of the first quarter, investment grade tax-exempt bonds tracked in the S&P National AMT-Free Municipal Bond Index have returned 0.93% year-to-date underperforming relative to the over 2% return of the investment grade corporate bond market tracked in the S&P U.S. Investment Grade Corporate Bond Index. High yield bonds are showing similar Read more […]

The Rieger Report: Municipal Bonds and the Taxman

The tax season for U.S. taxpayers is upon us.  For bond income what you keep after Uncle Sam takes his share can be more important than what you earn. Income, Yield and Duration: Investment grade municipal bonds on average have a higher coupon cash flow to bondholders than corporate bonds and that cash flow is exempt from federal taxation.  The Read more […]

Uncertainty, a Four Letter Word for the Municipal Bond Market

The uncertainty of the future of Puerto Rico municipal bonds continues to weigh on the municipal bond market. Bonds in the S&P Municipal Bond Puerto Rico Index have settled into an average price of just over 50 cents on the dollar with the low point of 47.27 on July 8th 2014.   The index tracks over 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 […]

The Rieger Report: Boring is good! Municipal Bonds Return 9.26% in 2014

The municipal bond market steadily marched upward in 2014 and the S&P Municipal Bond Index ended up 9.26%.  The main ‘drama’ during the year came from the Detroit bankruptcy proceedings and wild swings of prices of bonds issued by Puerto Rico. Overall, low new issue supply and relatively attractive tax-free yields certainly helped keep the supply demand equilibrium to the demand side. Investment Read more […]

Though Not In the Lead, After the FOMC Will Leveraged Loans Be The Turtle That Wins the Race?

The senior bank loan or leverage loan market as measured by the S&P/LSTA U.S. Leveraged Loan 100 Index ticked up last week as the index has returned +0.10% month-to-date and 1.56% year-to-date.  Last week’s price action of the secondary loan market assisted the index in clawing back against a month-to-date loss from the beginning of Read more […]

Late July Muni Minutes

Long-term bonds have posted solid gains thus far in 2014, with rates holding low longer than most expected. The composition of the municipal bond market is heavily weighted with short duration bonds. The looming sentiment of rising rates and inflation has investors focused on reinvestment risk; however, a supply imbalance systemic of voters’ hindrance for Read more […]