Build America Bonds (BABs) were introduced during the 2009 economic downturn as a way for state and local governments to finance infrastructure projects at reduced costs. These taxable municipal bonds provided issuers with a federal subsidy to offset borrowing costs, allowing them to engage in significant public projects. However, as market conditions fluctuate, especially with
Bonds
After a series of four consecutive trading days marked by rising yields, the municipal bond market experienced a noteworthy rebound on Thursday. Municipal yields retraced downwards by as much as seven basis points based on different maturities, signaling a shift in investor sentiment. This correction coincided with a slight decline in U.S. Treasury yields, which
The municipal bond market has recently experienced significant volatility, marked by a pronounced correction on Wednesday. This shift can be traced back to a broader alignment with the U.S. Treasury yields, which have seen a steady increase over the past few weeks. This disparity in performance had led municipal bonds to appear overvalued, making a
The financial landscape is undergoing a significant metamorphosis, largely driven by changing investor preferences. The recent announcement from BlackRock to convert its $1.7 billion High Yield Municipal Bond Fund into an active exchange-traded fund (ETF) exemplifies this momentum. Such conversion highlights an escalating shift in demand from traditional mutual funds towards ETFs, a transformation that
As the municipal bond market evolves, recent trading dynamics reveal a relatively stable environment for municipal securities, despite ongoing fluctuations in broader financial markets. The municipal bond mutual fund segment has demonstrated remarkable resilience, largely fueled by consistent inflows. For instance, during the week ending Wednesday, investors contributed a notable $1.718 billion to municipal bond
In a notable step aligned with evolving market dynamics, S&P Global Ratings has placed over 400 state and local government issuers under observation, following the introduction of a new government rating methodology. This move signifies a substantial shift in how government entities are evaluated, as the agency has centralized criteria into a single scored framework
The bond issuance landscape in 2024 has witnessed a remarkable surge, signaling a potential breakout year for municipal bonds. As of September, data reflects that this surge is not only considerable but also consistent, marking nine consecutive months of year-over-year increases and establishing a new rhythm in the market that could redefine municipal financing. September
The financial market has witnessed an unprecedented surge in oversubscription rates for newly issued high-yield debt, pointing to a remarkable appetite among investors. As municipal bond issuances escalate, particularly in states known for their stringent tax structures, the landscape showcases both resilience and strategic maneuvering among users of debt instruments. This article delves into the
Chicago, one of America’s largest cities, has been grappling with various financial challenges in recent years. Amidst these challenges, the City Council found itself locked in a contentious debate over a substantial $1.5 billion refunding bond measure, which aims to restructure the city’s existing debt. This financial endeavor raises numerous questions about the transparency of
The bond insurance industry has experienced a remarkable revival in 2024, with significant growth in demand and robust activity across various financial markets. Investors are increasingly turning to bond insurance as a safety net amid economic uncertainties, leading to a noticeable surge in the amount of debt secured by these insurance policies. This article explores