Market News Commentary - From The Desk of David Loesch 10.23.2018Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on October 23rd, 2018
- Atlantic City was upgraded two notches by S&P to B on 10/16/2018. S&P indicated that this reflect their opinion of the city improved operating environment and structural financial improvement following the settlement of outstanding tax appeals and the continuation of extensive oversight.
- Invesco is purchasing Oppenheimer funds, with this purchase, two firms (Investco and Nuveen) have control of about 40% of the assets of the high yield MUNI bonds funds. Oppenheimer is a large HY player in the street and owns a many CUSIPS of PR HY paper.
- Bond market bull Robert Tipp who is the head of global bonds at PGIMFI, expects the 10T to close back below a 3.00% in the “not too distant future”. Looking out a couple of years, he expects the 10T to trade around a 2.50%.
- Sales of US homes eased in Sept to the weakest in almost 3 years due to increased rates.
- Tax Exempt MM funds are piling up the cash. Assets have grown to 134B which is the highest since mid-July.
- PR bonds continue to rally with the end of restructuring near. There was a fiscal plan that was sent out Friday 10/19/2018 that indicated and showed more money to “repay” bondholders while also servicing the insured debt in its entity.
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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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