Tag Archives: Puerto Rico

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: Puerto Rico Bonds Face Plant

The municipal bond market reacted yesterday to the Governor of Puerto Rico’s statement about not being able to repay its obligations. Prices of bonds issued by the commonwealth and various authorities tumbled driving a one day drop of over 6% in the S&P Municipal Bond Puerto Rico Index.  That index now reflects a negative 9.12% month-to-date return and negative Read more […]

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 […]

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 […]

At 50 cents on the dollar can Puerto Rico cause more pain for the muni bond market?

The S&P Municipal Bond Puerto Rico Bond Index has barely eked out a positive return so far in 2015. Meanwhile, bond prices in the Index are averaging 50 cents on the dollar.  The low point for the average bond price in Puerto Rico was July 8th 2014 at 47.27 cents on the dollar.  Just as 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 […]

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 […]

Municipal Bonds: Hooked on Tobacco

The S&P Municipal Bond Tobacco Index has returned 12.79% year to date as the tobacco settlement bond market has recovered from a dismal 2013 return of -8.77%. Yields of these bonds have fallen 99bps during the year to an average of 5.92%. These long duration higher yielding bonds represent just under 15% of the total Read more […]

Municipal Bonds Continue Their Climb Out of the Basement

As of mid May 2014, the S&P Municipal Bond Index has returned 5.91% as the supply demand imbalance continues.  New issue supply remains comparatively low to relative to past years and munis have been enjoying a flight to quality halo despite the weaknesses shown by Detroit and Puerto Rico.   The S&P 20 Year High Grade Read more […]