October 2023 has concluded with a relatively stable yet unremarkable performance in the municipal bond market. While there was minimal movement in established bonds, the dynamics created waves across various sectors. Notably, although municipal mutual funds experienced overall inflows, high-yield segments witnessed their first outflows since mid-April, which raises questions about underlying investor sentiment. U.S.
Bonds
The financial landscape for Build America Bonds (BABs) has experienced significant upheaval in 2024 due to fluctuating market conditions, increasing ratios, and a rise in interest rates. These factors have collectively contributed to a notable slowdown in BAB redemptions, even as some issuers express intentions to call back their bonds before the end of the
In a surprising turn of events, the municipal bond market displayed notable resilience on Thursday, reversing a streak of rising yields that had persisted for four consecutive sessions. The gains in the municipal sector coincided with improvements in U.S. Treasury yields, a mixed response from equity markets, and a notable decrease in municipal bond yields,
The municipal bond market experienced a significant retrenchment recently, marked by a meaningful increase in yields. This adjustment period comes after a prolonged phase of outperformance where municipal ratios appeared excessively rich compared to U.S. Treasuries. With heightened yields—rising anywhere from five to 18 basis points depending on the maturity range—the 10-year municipal yield crossed
The investment landscape is undergoing a tremendous transformation, with a notable shift from traditional mutual funds to exchange-traded funds (ETFs). BlackRock’s recent decision to convert its $1.7 billion High Yield Municipal Bond Fund into an active ETF is a prime example of this trend. As investor preferences evolve, financial advisors are increasingly incorporating active ETFs
The municipal bond market has shown resilience and stability amid a dynamic economic environment characterized by fluctuating interest rates and increased investment from mutual funds. Insights gathered from the recent market performance reflect fluctuating trends that could suggest future movements in the municipal bond sector. On a particular Thursday, municipal bonds experienced minimal change, indicating
In a significant move affecting the landscape of public finance, S&P Global Ratings recently placed over 400 state and local government issuers under observation as it rolled out a revised rating methodology. This initiative, which was implemented earlier this month, marks a new direction for credit assessments of U.S. governmental entities. The updates introduce a
The municipal bond market is experiencing an unprecedented surge in issuance, suggesting that 2024 could become a historic year for bond volumes. Recent data reveals that the trend of increasing bond offerings is not only continuing but accelerating as various factors come into play. The impact of dwindling pandemic aid, election-induced uncertainty, and favorable financing
The world of municipal bonds is witnessing a remarkable shift, particularly in the high-yield segment. In the face of large-scale new issues, investor enthusiasm has driven many of these deals to become substantially oversubscribed, creating a competitive landscape in the financial markets. Analysts and professionals in the field are taking note of these developments, as
In a significant political twist, Chicago’s City Council has opted to postpone a critical vote regarding a $1.5 billion bond refinancing measure that has sparked considerable debate amongst local officials. At a recent meeting, notable opposition emerged from certain aldermen and Illinois Comptroller Susana Mendoza, culminating in Municipal Market Analytics issuing a cautionary credit recommendation