July 2, 2009
Investing
This report was prepared by my firm LPL Financial.
photo credit: scraggy & fluffy
Bond investors have always worried about the impact of rising interest rates on their portfolios and rightly so. So, higher yields in the market translate to lower prices for existing holdings and investor worries about rising interest rates. Their worries have [...]
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June 26, 2009
Investing
This report was prepared by my firm LPL Financial
The municipal market may soon garner negative headlines if an expected large number of states and municipalities announce budget deficits with the July 1 start of their fiscal year. Municipal bond credit quality may therefore come under question, and investors need to be prepared. Budget strains were [...]
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Municipal Bonds New Issue Mirage
by Jeff Rose on January 14, 2010
in Bond Commentary
Total issuance of new municipal bonds may set a record in 2010, but the real story for investors is the composition of new bond issuance. Wall Street forecasts range from $415 billion to $450 billion in new municipal bond issuance for 2010, with most forecasts clustered towards the upper end of that range.
New municipal bond issuance in 2010 therefore stands a chance to break the 2007 new issue record of $435 billion. Supply is one of the most important drivers of municipal bond performance and manageable supply helped produce good performance in 2009.
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