Dragonfly Capital: – Muni’s have had it….This time for real. – There have been many bold calls for Municipal Bonds to finally reverse their multi-year run higher and fall in price. But over the last 4 years the Muni market has done nothing more than hiccup a couple of times before racing back higher. But this time it’s different.
Reuters: Puerto Rico eyes tax hikes to help cure deficit-officials. – Puerto Rico’s new government is eyeing more than $1 billion in tax hikes and other changes meant to fix chronic budget gaps worrying US bond buyers and Wall Street credit rating agencies.
Bloomberg: – It’s time to bring back Build America Bonds. – Roads, bridges and other infrastructure in the US are steadily growing older and weaker. Given low interest rates and elevated unemployment, this is an ideal moment to invest in fixing them. But how can it all be paid for?
Learn Bonds: – How to do an annual retirement investments and budget review. – It is tax time in the US, and tax time is a good time to do your annual retirement investments and budget review. You should do such a review once a year. The following is a step-by-step guide for doing such a review.
CNBC: – 3 signs that municipal bonds could be in trouble. – March has seen a fairly brisk exodus from municipal bonds in what could be the first signs that investors are beginning to worry about fixed income. Even though munis are only on a three-week decline in terms of fund flows, three principal factors are presenting challenges to the group.
The Fat Pitch: – Time to short Treasuries. – There is a pronounced seasonal pattern in 10 year yields. In most years, yields start to decline in the second quarter (red arrows). Two of the exceptions came when the SPX formed a major bottom in 2003 and 2009 (blue arrows). The other two exceptions: the tech bubble in 1999, and 2005, a year in which SPX and TLT did absolutely nothing.
Real Clear Politics: – Don’t mess with our bonds: Roads need fixing. – Anytime you drive down a highway, drop a child off at school or jump on a train, the last thing on your mind are tax-exempt municipal bonds, which help to pay for highways, schools and transit. You need to think about them now. Congress and the White House have targeted the tax-exempt status of these bonds as a way to raise revenue. Mayors and local elected officials, however, know that would be a penny-wise, pound-foolish decision.
Cate Long: – This is why Stockton is broke. – Stockton, California is in federal bankruptcy court trying to make the case that it is insolvent and should be taken into the protection of the court to sort out its debts and obligations. Meanwhile, bond holders and bond insurers say it hasn’t tried hard enough to meet the requirements of Chapter 9 bankruptcy. So how did Stockton get into such a mess in the first place?
Financial Iceberg: – When will the bond bubble finally burst? – At the beginning of each year, the same question arise within the bond managers and the same behavior appears within the financial community, especially since the financial crisis began… We will try to pinpoint important reasons why we think the bond market will behave ok within the next few months.
Reuters: – Will be operationally easy to sell assets -Fed official. – It will be easy from an operational standpoint for the Federal Reserve to sell the assets it has bought when the time comes, the U.S. central bank official responsible for carrying out the quantitative easing program said on Wednesday.
Morningstar: 4 Strategic bond funds for yield-hunters. – Strategic bond funds have the flexibility to adapt to difficult macroeconomic conditions and allocate assets accordingly. Here’s a look at 4 strategic bond funds you may want to add to your portfolio.
Fortune: – Debt is back – big deals may be close behind – Here’s one reason buyout kings like Blackstone’s Steve Schwarzman are eager to launch rival mega-bids for takeovers of companies like Dell: They know investors will give them gobs of debt at unprecedentedly cheap levels and with lenient terms. Just look at the way U.S. debt buyers gobbled up the loans and bonds being used to fund Berkshire Hathaway’s $23 billion buyout of Heinz.
Reuters: – US foreclosures fall to lowest since crisis-report. – The number of new U.S. foreclosures initiated in the fourth quarter of 2012 fell to the lowest level since officials began tracking them during the financial crisis, a government report said on Wednesday.
HeraldOnline: – Fitch takes various rating actions on enhanced municipal bonds. – Fitch Ratings has taken various conforming rating actions on enhanced municipal bonds corresponding to actions taken on their associated enhancement providers or underlying bonds.
FT: – Global pool of triple A status shrinks 60%. – The global pool of government bonds with triple A status from the three main rating agencies, the bedrock of the financial system, has shrunk more than 60 per cent since the financial crisis triggered a wave of downgrades across the advanced economies.
And for muni bond issuance YTD, they're essentially flat. One reason: refunding volume is down 23% for March and 9% YTD.
— James Ramage (@RJamesRamage) March 27, 2013