The possibility that income tax rates might increase in the years ahead is a factor that may make tax-exempt bonds more attractive as an investment, but the outlook for broader tax reforms must also be taken into consideration.
Contrary to many headlines in 2011, no broad default crisis developed in the municipal bond market, and today state finances are finding greater stability.
Veteran municipal bond Portfolio Manager Thalia Meehan separates fact from fiction in the municipal bond market.
On the heels of its August 5 downgrade of U.S. sovereign debt, Standard & Poor’s lowered the ratings of more than 11,000 municipal securities, including taxable and tax exempt bonds. While this number does seem large, it covers less than 1% of the $3 trillion municipal bond market. Continue reading
Despite the fact that the state of California is facing an estimated $17.9 billion budget gap, in our view the default risk on its debt is extremely low. In recent weeks, lawmakers there have issued several proposed solutions to eliminate … Continue reading
In April, Moody’s Investors Service began to re-calibrate its rating scale for municipal bonds. The new scale is expected to help bridge the differences between the current corporate and municipal scale ratings. Moody’s revised ratings are intended to indicate average … Continue reading
