Tag Archives: Rieger Report

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 […]

Infrastructure Preferreds, +4.96% YTD

Over a three-year period, the annualized returns of the U.S. preferred market have been more bond-like than equity-like.  The S&P U.S. Preferred Stock Index had a three-year annualized return of 7.95% as of March 27, 2015 while long U.S. Treasury bonds have returned 8.14% in the same period.  Meanwhile, the three-year annualized return of the 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 […]

The Rieger Report: Should Municipal Bonds be “Core”?

The often misunderstood municipal bond market is not considered a ‘core’ asset class by many investors and institutions offering financial products to investors.  Certainly investment grade municipal bonds have some qualifications to be ‘core’ and the proposed Qualified Public Infrastructure Bond (QPIB) might help change the way we think about this important asset class. Some things for us Read more […]

High Yield Bonds: Can more juice get squeezed out of the junk bond sector?

Lipper reports high yield bond funds have seen the first cash outflow in 7 weeks which might be a sign that junk bonds could run out of gas. Over the last five years the S&P U.S. Issued High Yield Corporate Bond Index has seen annualized returns of over 13.6%. Year to date the index has Read more […]

Municipal bond market – Readily absorbs a bump up in new issue supply

The S&P Municipal Bond Index has returned 5.74% year to date as yields have remained relatively stable as the market absorbs new issue supply. High yield municipal bonds tracked in the S&P Municipal Bond High Yield Index have continued to outperform their corporate junk bond counterparts by returning 9.67% year to date. As the yields Read more […]