Tax-Equivalent Yields Appear Attractive
Concerns about the fiscal health of state and local issuers have prompted some investors to shift to markets perceived as safer, causing municipal bond yields to rise. This turmoil, combined with the expiration of the Build America Bonds program, which provided federal subsidies for new issues, has squashed issuance in 2011. As of March 7, for example, the four-week rolling average for issuance stood at just under $2.8 billion— a 73% drop from the previous peak in November 2010.
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Fed Watch
END OF THE BUILD AMERICA BONDS PROGRAM SLASHES NEW MUNI ISSUANCE by LordAbbett
Concerns about the fiscal health of state and local issuers have prompted some investors to shift to markets perceived as safer, causing municipal bond yields to rise. This turmoil, combined with the expiration of the Build America Bonds program, which provided federal subsidies for new issues, has squashed issuance in 2011. As of March 7, for example, the four-week rolling average for issuance stood at just under $2.8 billion— a 73% drop from the previous peak in November 2010.
Read Entire Report
About Analysts Online
You should not treat any opinion expressed by the Contributor’s as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of their opinion. All opinions expressed by Contributor’s are solely the Contributor’s opinions and do not reflect the opinions of AnalystsOnline.com or affiliates, and may have been previously disseminated by the Contributor’s on television, radio, internet or another medium. Contributor’s opinions are based upon information they considers reliable, but neither AnalystsOnline.com nor its affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Contributor’s, AnalystsOnline.com, its affiliates and/or subsidiaries are not under any obligation to update or correct any information provided. Contributor’s statements and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Contributor’s nor AnalystsOnline.com guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested. Investments or strategies mentioned may not be suitable for you. This material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned. Before acting on information, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser. The content of this website is published in the United States of America and persons who access it agree to do so in accordance with applicable U.S. law.