The municipal bond market is facing a period of transition as investors prepare for significant volatility driven by dual forces: the impending election and changes in Federal Open Market Committee (FOMC) monetary policy. Recent market indicators indicate a firmer stance for municipals, with U.S. Treasury yields experiencing a decline, particularly for longer maturities. This article
Bonds
In October 2023, the municipal bond market faced a mixture of trends, with notable developments that reflect broader economic factors influencing investor behavior. As the month concluded, municipal bonds showed minimal changes despite larger-than-usual inflows to muni mutual funds. In contrast, high-yield funds experienced their first outflows since the middle of April. Understanding these nuanced
The landscape of municipal finance is currently undergoing a pronounced transformation, particularly in the realm of Build America Bonds (BABs). Amid swirling market conditions, escalating interest rates, and shifting economic motivations, the activity surrounding BAB redemptions has experienced a marked slowdown. Despite these challenges, a number of issuers are indicating their intent to call back
The municipal bond market has recently experienced notable shifts, particularly as yields demonstrated a decline on Thursday, effectively ending a series of four consecutive trading days marked by increasing rates. In tandem with a modest improvement in U.S. Treasuries, municipal equities exhibited mixed performance, indicating varying investor sentiment and market reactions. Municipal yields fell by
On Wednesday, the municipal bond market witnessed a significant correction as yields surged considerably, responding to the recent trends in U.S. Treasury rates. As a result of a series of previous outperformance, municipal bonds found themselves in a position where their yields were not in sync with their Treasury counterparts. The spike in yields was
In the latest development in the investment landscape, BlackRock has announced the conversion of its $1.7 billion BlackRock High Yield Municipal Bond Fund into an active exchange-traded fund (ETF). This transition reflects a seminal shift in investor preferences, as many are increasingly favoring ETFs over traditional mutual funds. Such strategic changes by major financial institutions
The municipal bond market is currently experiencing fluctuations that reflect broader economic trends, specifically in the context of recent interest rate movements and investor behaviors. This article delves into the current state of municipal bonds, emphasizing key developments and strategic insights that could impact future prospects for investors and issuers alike. On a recent Thursday,
In a significant move that underscores the evolving landscape of municipal credit assessments, S&P Global Ratings has initiated a comprehensive reevaluation of its rating methodology for state and local government issuers. More than 400 such issuers have been placed under criteria observation, indicating a potential recalibration in how these entities are rated. The updates introduced
As we navigate through 2024, the bond issuance market is experiencing a remarkable surge that positions it to potentially set new historical records. Data from LSEG reveals that September marked yet another impressive month in the market, highlighted by a 44.5% increase in issuance compared to the previous year. This growth can largely be attributed
The bond market has recently witnessed an unprecedented surge in activity, particularly in the high-yield sector. Investor enthusiasm is palpable, with a significant increase in oversubscriptions and a rush to acquire tax-exempt debt. This dynamic has been driven by various factors, including economic trends and fiscal policies, that continue to influence both the supply and