How Would Municipals Fare Under Romney?

Last month, we wrote that changes to the tax code being discussed in Washington would affect the value of municipal bonds. While that analysis still holds true, that was before the election campaign engines really revved up. Now there’s more chatter, if not more clarity. My colleague Michael Brooks weighs in.

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Challenges in Today’s Municipal Market

Most fixed-income investments carry two key risks: interest-rate risk and credit risk. Both affect a bond’s value in the market. But before the 2008 financial crisis, interest-rate risk was the primary concern of many investors and investment managers—credit risk was much less of a consideration. My colleague Michael Brooks explains why.

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Could Tax Reform Hurt Municipal Bond Prices?

Tax rates and federal government expenditures are being discussed in Washington. The ultimate result could affect the value of municipal bonds. My colleague Michael Brooks explains.

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The Underfunded Pension: States Take Action

State and local governments with significant pension funding shortfalls are coming under increased political pressure due to new transparency rules in accounting. My colleague Joe Rosenblum examines their options.

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Municipal Pensions: A Big Problem?

Underfunded pension systems pose significant challenges to many state and local governments. For a few, it’s an immediate problem. But as my colleague Joe Rosenblum explains, for most municipalities, pension troubles aren’t really the proverbial last straw.

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Global Bonds: Protection in Down Markets

As US Treasury yields continue to plumb record lows, some have quipped that government bonds have gone from offering risk-free returns to “return-free risk.” Indeed, when interest rates inevitably rise from their current levels, bondholders face the prospect of poor or even negative returns.

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Is Your Global Bond Fund Riskier than You Thought?

Global bond funds continue to attract strong inflows as near-zero interest rates lead many investors to look abroad for assets with attractive yields. As we’ve argued before, global bonds provide many important benefits, but it’s crucial that investors select the right type of fund.

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Emerging-Market Credit
Has Come of Age

While investors have flocked to emerging-market government bonds in recent years, some still perceive emerging-market corporate bonds as an immature asset class. Shamaila Khan, who manages global credit portfolios, questions some assumptions about emerging credit.

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Three Cities in Three Weeks: A Significant Trend in Municipal Bankruptcy?

On Tuesday, San Bernardino, California, became the third California city in three weeks to announce its intention to seek bankruptcy protection. Does this mark the beginning of a significant trend toward bankruptcy, particularly in California? My colleague Guy Davidson examines the patterns.

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LDI: More on Going Global in Bonds

For liability-driven investors, exposure to global bonds offers important benefits: a strong correlation to domestic debt, with greatly reduced volatility. However, these are not the only positives. Today, we’ll look at some other important benefits—such as greatly expanding the investable universe and offering a natural hedge against the tail risk of a domestic credit crisis—and [...]

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