Municipal Bond News

Market News Commentary - From The Desk of David Loesch 08.27.2020

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

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on July 22nd, 2020

DFW will issue $463MM bonds this week and $1.1B of taxable securities the week of 7/27 to refinance debt. This financing comes on top of the $392MM bonds it issued last week.

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

With the recent business closures racing through America, sales tax collections have tumbled 21%. Bonds issued based on sales tax collections have typically been very safe due to the promise and ability to collect tax revenue.

Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on July 9th, 2020

Rates have fallen so low that America's states and cities are embracing a refinancing boom that seemed to disappear after Trump was elected, and for the first half of this year. Barclays boosted its forecast for taxable municipal bond sales this year to as much as $115B up from $90B. Taxable Muni's have jumped +380% this year as compared to last.

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

Fund flows continue to be healthy, investors added $2.61B to MUNI bonds funds the week ending 6/24.