Market News Commentary - From The Desk of David Loesch 01.09.2019Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on January 9th, 2019
• NY Mayor de Blasio proposed a 100MM plan that would provide affordable healthcare to all.
• CA governor indicated that he will “build and safeguard” the record budget surplus. There are many CA bonds that have done very well over the past few years, I suspect they will continue to increase taxes while looking for ways to reduce debt. CA has turned out well for our investors and should continue to do well into the near future.
• Texas lawmakers will have nearly 9B more in revenue for the next two-year budget. This is a result of the robust economy that TX is enjoying, TX paper along with many other states should do well in 2019.
• Many market participants are very bullish on supply levels for 2019. This will help the overall markets I believe with liquidity and flow, with the amount of cash on the books, many are looking to place funds into our markets, 2019 will be a good time to do this. Many believe that the state and local governments will grow by 20% to 390B this year, this outlook is welcome news for MUNI traders and bankers who saw debt sales fall over 20% in 2018.
• NY biggest debt issuers plan to sell about 5.5B of bonds int he 1st Q of 2019. This is an 80% increase from the same period last year. This will include 1.358B of refunding’s.
• MUNI bonds staged their biggest rally in one day yesterday in a month. Investors are shifting money into the safest assets after stocks sank on speculation that AAPL’s forecast is the start of something bigger.
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This content is based on the opinions of David Loesch based on his review of articles from Bloomberg.com or CNBC.com.
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