Municipal Bond News

Market News Commentary - From The Desk of David Loesch 10.01.2020

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on October 1st, 2020

House leaders postponed a vote on a Democrat only stimulus bill to give Mnuchin and Pelosi one more day to negotiate a compromise on a 4^th relief package. Pelosi met for about 90 minutes Wednesday without striking a deal.

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on September 24th, 2020

States and municipalities are headed toward a blowout year for bond sales, despite taking a few months off for the pandemic. So far, in 2020, local governments have sold $315B in long-term MUNI's.

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on September 16th, 2020

The MTA priced their new issue Tuesday night. Due in 2050, with a 4.00% coupon, the deal's final maturity was priced to yield 4.35% or 277 basis points above the benchmark index. The 2043 maturity is a 5% coupon, priced to yield 4.44%. MTA warned that it is focused on survival and will need to cut subway service by 40% unless the federal government provides $1

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on September 2nd, 2020

U.S. companies added fewer jobs than expected in August, suggesting the labor market rebound remains gradual, with employment well below pre-pandemic levels. Payrolls increased by 428,000 jobs, after an upwardly revised 212,000 in July, ADP data showed. That was less than the 1 million estimates.

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on August 27th, 2020

The FED indicated they would likely keep short-term rates near zero for five years or possibly more after adopting a new strategy for carrying out monetary policy. The new approach is likely to result in policymakers taking a more relaxed view towards inflation. Powell will provide an update on the FED's 1.5-year-old framework of its policies and practices when he speaks

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on August 20th, 2020

The minutes of the July FOMC meeting confirmed that the FED is gearing up to release the policy framework review results while enhancing the traditional tools they have in their "toolbox." The FED also indicated that many market participants would have to wait until the end of this year to have 2021 guidance, the situation is "just too fluid" to make any predict

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on August 13th, 2020

Many in our business believe that government lifelines have merely deferred a likely surge in unemployment, which could bring about labor market scars that will leave a mark on the recovery and pin yields down for the near future. Over the last four days, our yields in all markets have gone up too far too fast. A FED study of 15 pandemics concluded that real rates were substa

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on August 6th, 2020

Franklin Templeton started a fund focused on investing in "green-backed muni bonds." These are bonds that concentrate on climate sustainability and which positivity impact the environment. The fund will spend at least 80% of its net assets in MUNI green bonds from issuers.
Benchmark State yields as of 8/4 10-year: CA .67. FL .67, IL 2.80, NY .88.

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on August 6th, 2020

Franklin Templeton started a fund focused on investing in "green-backed muni bonds." These are bonds that concentrate on climate sustainability and which positivity impact the environment. The fund will spend at least 80% of its net assets in MUNI green bonds from issuers.
Benchmark State yields as of 8/4 10-year: CA .67. FL .67, IL 2.80, NY .88.

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on July 30th, 2020

It goes to show you how quickly things can change in our business - a day after Republicans released the $1T plan that provided no new aid for governments to combat budget shortfalls, analysts are confident that a portion of the money will go towards states and cities. Republican lawmakers said Monday that this would not happen, however many in the street believe that it will, alon