Markets

We Just Saw The Worst Run Of Outflows In Muni Bond History

Municipal bond funds saw their worst outflows ever in 2013. Fears over rising interest rates and the dire credit environment for Detroit and Puerto Rico combined to create 22-straight weeks of redemptions, totaling $US58 billion. “It’s the worst period in my 25-year career,” Tom Metzold of Eaton Vance Management told […]
We Just Saw The Worst Run Of Outflows In Muni Bond History
Markets

Municipal Bond Market Rocked As Interest Rates Spike

(Reuters) – The possibility of rising interest rates rocked the U.S. municipal bond market on Thursday, with prices plunging in secondary trade, investors selling off the debt, money pouring out of mutual funds and issuers postponing nearly $2 billion in new sales.
Municipal Bond Market Rocked As Interest Rates Spike
Markets

David Kotok And All His Friends Agree: MEREDITH WHITNEY IS WRONG

[credit provider=”Bloomberg” url=”www.businessweek.com/videos/2012-08-03/kotok-on-u-dot-s-dot-payrolls-jobless-rate-confidence”] The war against Meredith Whitney’s call for a municipal bond-pocalypspe continues.David Kotok of Cumberland Advisors just wrapped up his 5-day retreat at Leen’s Lodge in Grand Lake Stream, Maine.  The annual gathering included around 48 financial market professionals, economists, traders, academics, and Fed advisors.
David Kotok And All His Friends Agree: MEREDITH WHITNEY IS WRONG
Markets

Meredith Whitney Was Right About The Muni Disaster After All

[credit provider=”60 Minutes”] Analyst Meredith Whitney has been repeatedly lambasted for her prediction on “60 Minutes” in December 2010 that “you could see 50 to a hundred sizable defaults” in municipal bond markets.In truth, there have been relatively few important municipal defaults—just an average of 5.5 per year in 2010 […]
Meredith Whitney Was Right About The Muni Disaster After All
News

MOODY’S: Federal Budget Cuts Could Paralyze State And Local Governments

[credit provider=”flickr” url=”http://www.flickr.com/photos/avlxyz/268478728/sizes/o/”] Moody’s affirmed its negative credit outlook for state and municipal credits Monday, citing revenue losses as Washington looks to reduce the federal deficit.”The determination of both political parties to reduce project federal budget deficits is certain to result in reduced funding for federal programs run by the […]
MOODY’S: Federal Budget Cuts Could Paralyze State And Local Governments
News

Jefferson County Rejects Creditors’ Offer But Delays Bankruptcy Decision

[credit provider=”fables98 via Flikr”] Jefferson County commissioners postponed a bankruptcy decision — again — today in order to take a larger role in negotiations with the county’s sewer creditors.Local officials met all day today to consider the creditors latest proposal to settle Jefferson County’s $3.14 billion sewer debt. Commissioners ultimately […]
Jefferson County Rejects Creditors’ Offer But Delays Bankruptcy Decision
Markets

The Real Fear For The Muni Market Isn’t The Default Rate

[credit provider=”HidingInABunker via Flickr” url=”http://www.flickr.com/photos/hidinginabunker/312047264/”] The potential for mounting debt and falling tax receipts to lead to huge defaults by state, regional, and local governments has precipitated many conference calls and webinars focusing on “setting the record straight” or “busting the myths” for municipal bonds.In each of these conversations I’ve […]
The Real Fear For The Muni Market Isn’t The Default Rate
Markets

The Muni War Of Words Continues

The Muni war of words continues. Meredith Whitney dug in her heels in a Bloomberg interview with Tom Keene and Ken Prewitt. Ms. Whitney has forecast $100 billion of defaults in Muniland for 2011.  We have argued the other side and written on this subject many times.
The Muni War Of Words Continues
Markets

Look Who’s Buying Munis Again

The essential muni-story of late seems to be two-fold: First of all, munis haven’t yet had a meltdown or seen defaults en masse. We’re almost 5 months through the year. Second of all, they’re behaving like other forms of credit (including Treasuries), and so they’ve been rallying as “risk” has […]
Look Who’s Buying Munis Again
Markets

Jamie Dimon: About 100 Municipalities May Not “Make It”

[credit provider=”Stanford Graduate School of Business”] In Washington, at an event at the U.S Chamber of Commerce, Jamie Dimon apologized for being the bearer of bad news.”I wouldn’t panic about what I’m about to say,” the JP Morgan head declared, before adding:
Jamie Dimon: About 100 Municipalities May Not “Make It”
Markets

Jim Grant Names His Alternative To Muni Bonds

In a recent interview with Bloomberg (video below) bow-tie wearing linguistics lover and bond market expert Jim Grant made it quite clear he’s not a buyer of municipal bonds. Instead, he likes certain REITs specializing in the purchase of mortgage backed securities, some of which are pretty good businesses he […]
Jim Grant Names His Alternative To Muni Bonds