Municipal Bond News

Market News Commentary - From The Desk of David Loesch 01.28.2021

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on January 28th, 2021

The FOMC indicated no change in policy on 1/27/21 and only slight changes to the economy's overall outlook and growth. They are concerned about "pockets of weakness" and commented that the economy's slowdown was much more "broad-based" than most realized. The FED indicated that rates would remain the same for quite some time and most likely taking

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on January 21st, 2021

NY is seeking $15B in aid from President Joe Biden. Governor Cuomo presented a state budget for fiscal 2022.

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on January 14th, 2021

President-elect Biden will unveil today a COVID Relief Package rivaled in size only by last year’s $2Trillion Cares Act. Transition officials developed a proposal with Democratic lawmakers in recent days; the package is expected to be at least $900B, with Schumer pressing for $1.3T. Although these packages will be favorable for many, including most likely states and mun

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on January 7th, 2021

With the Ga Senate race over & a Democratic win, President-elect Biden can push for another stimulus bill extending assistance to cities and states to help fight against shutdowns. With this backstop in place, it allows primary dealers to issue paper for those in need.

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on December 31st, 2020

The $3.9 trillion U.S. municipal bond market is on track to finish 2020 with returns of about 5.2%, marking the seventh straight year of gains and showcasing the rebound from a record selloff in March as fears about the pandemic’s fiscal fallout rattled investors.
Initial jobless claims fell to 787,000 last week, from a revised 806,000 the prior week.

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on December 23rd, 2020

On many occasions, the FED has indicated that rates will not move for the next several years and unanimously approved to keep the FED Funds rates at 0.00 to .25%, where it has been since March. We remain buyers of High-Grade paper, while also starting to put money <3 years around a .5-.60% YTW tax exempt.

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on December 17th, 2020

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on December 10th, 2020

Large transportation systems in the US are struggling to retain cash flow. Many are pleading with Congress for FED funds to avoid deep service cuts and layoffs while warning that an economic comeback depends on mass transit. MTA's, and the like, will most likely receive help (MTA has already tapped the liquid facility) as we move through the 1st Q of 2021; the Biden/Yelle

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on December 3rd, 2020

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on November 19th, 2020

CA will see a $26B windfall to help balance next year's budget; this is an unexpected cushion against the pandemic led recession and a stark contrast to the doom predicted earlier this year, when the world’s 5^th largest economy ground to a halt. CA indicated that this "windfall is a one-time" occurrence and will undoubtedly help the budget as they mov