Municipal Bond News

Market News Commentary - From The Desk of David Loesch 12.12.2019

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on December 11th, 2019

A proposed 15B CA ballot measure that would authorize the most significant school construction bond in the state's history will be on moved to November 2022 - this is interesting based on how low the rates are now. The bankers indicated that they did not want it to conflict with other measures; however I find it interesting that many of these bankers (JP Morgan one of them) fee

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on December 5th, 2019

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on November 21st, 2019

As the presidential race heats up, Democratic Rep Cortez and Schakowsky are working on legislation that would nearly double the top individual US tax rate to 59% on the highest incomes. The bill, which is still in the drafting stages, would increase the cap gains tax. If the Democrats have any presence in our upcoming election, I would expect our markets to gain.
30

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on November 14th, 2019

Taxable MUNI's continue to make headlines; there was an article in the WSJ and BB about Overseas Buyers sucking up taxable muni's. Zurich is the largest buyer, along with Mellon investments. With the unprecedented negative returns in Europe, this is has become a very attractive asset class.
Requests for CUSIP's last month were at an accelerated pace, sho

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on November 7th, 2019

Wall Street is not excited about the tax- the- rich push, which is front and center in the Democrats' efforts to unseat Trump. If this happens, the value of Tax-Exempt bonds will move up based on the income tax treatment. MUNI's delivered outsized returns during the Clinton years when the top rate marginal tax rate was higher than where it is now. Even though th

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on October 31st, 2019

Spreads on MUNI’s continue to tighten, and several articles a day come out about retail and institutional accounts chasing yield in this market. With yields still low, many investors are turning to the taxable MUNI markets to enhance their return. The wider spreads have been driven by a surge of taxable debt sales by states and municipalities in the second half of this

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on October 24th, 2019

NY State Thruway issued last Friday 3.00% due in 2053; this was the most actively traded bond that day with trades totaling 92.2B. I would expect that funds are buying this product.
Trump indicated that he hopes a trade deal will happen before the Asia Pacific Economic Co-op meeting takes place in mid-November. I think this is an aggressive timeline, and do not expe

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on October 24th, 2019

NY State Thruway issued last Friday 3.00% due in 2053; this was the most actively traded bond that day with trades totaling 92.2B. I would expect that funds are buying this product.
Trump indicated that he hopes a trade deal will happen before the Asia Pacific Economic Co-op meeting takes place in mid-November. I think this is an aggressive timeline, and do not expe

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on October 17th, 2019

108 borrowers have run into trouble grave enough where they have skipped debt payments or violated their convents as it pertains to bond contracts. This kind of trouble is a 30% jump from 2018 and the most since 2015. It indicates that there are yield chasers out there buying and getting things done in our markets on deals that should not have been issued. With yields a

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on October 17th, 2019

108 borrowers have run into trouble grave enough where they have skipped debt payments or violated their convents as it pertains to bond contracts. This kind of trouble is a 30% jump from 2018 and the most since 2015. It indicates that there are yield chasers out there buying and getting things done in our markets on deals that should not have been issued. With yields a