January 16, 2018 Five Ways to Keep Your Muni Portfolio on Track in 2018 by Daryl Clements They are the primary objectives of municipal bond investing: Safety. Income. After-tax return. But the market doesn’t always provide the ideal environment, and the coming year looks to be no exception. How can muni investors avoid getting knocked off course in 2018? They can adhere to these five strategies. Active & Passive , Fixed Income, Municipals, Rising Rates Likes 0 SHARE Bookmarks
January 10, 2018 Are Munis No Longer Safe? by Daryl Clements The Wall Street Journal published an article on January 7 challenging the safety of municipal bonds as “not [being] the reliable bet they once were.” While its headline may startle some investors, we’ve been endorsing this view for years. Municipal bonds simply aren’t a set-it-and-forget-it choice. Active & Passive , Fixed Income, Municipals, Volatility Likes 0 SHARE Bookmarks
December 18, 2017 Tax Reform: The Results Are In Following a reconciliation of the variant bills behind closed doors, final tax reform legislation has been delivered to the floors of Congress. We’ve kept score for muni investors. Here’s your cheat sheet of the likely impact on the muni market, from tax cuts to the reduction of state and local tax deductions. Fixed Income, Municipals Likes 0 SHARE Bookmarks
November 20, 2017 What’s on Congress’s Table? The Dish on the Tax Bills Congressional Republican leaders are hungry for tax reform. The House bill passed. The Senate bill is under debate. But the two versions must be reconciled before final legislation lands on the president’s desk. It’s a lot to digest. Thankfully, we’ve compared the bills and assessed their likely effects on the municipal market. Fixed Income, Municipals Likes 0 SHARE Bookmarks
November 14, 2017 Muni Investors: It’s Time to Quit Smoking Tobacco (Bonds) by Daryl Clements Cigarettes come with warning labels. Tobacco bonds should, too. These securities are highly volatile, and at current prices they have nowhere to go but down. There are healthier alternatives in the high-yield municipal bond market. Fixed Income, Municipals Likes 0 SHARE Bookmarks
October 31, 2017 Shadows of Tax Reform Loom over Municipals by Daryl Clements Now that talk of tax reform has taken center stage in Washington, the biggest concern for municipal investors is whether the upside of lower taxes could spell downside for their municipal bond valuations. The good news is that not every proposed change is likely to have a negative impact. Municipals, Policy & Regulation Likes 1 SHARE Bookmarks
October 16, 2017 Munis: Active or Passive? There’s No Debate by Daryl Clements Passive strategies have gained ground in some asset classes. But when it comes to municipal bonds, they don’t have a leg to stand on. In a market this complex and illiquid, an active manager is essential. Active & Passive , Fixed Income, Municipals Likes 0 SHARE Bookmarks
October 09, 2017 Why Muni Investors Shouldn’t Smoke Tobacco It’s not normal. When a fixed-income sector beats the S&P 500 over an extended period and by a meaningful amount, investors do a double take. Fixed Income, Municipals, Volatility Likes 0 SHARE Bookmarks
September 13, 2017 Rising Rates: What All Muni Investors Should Know Talk of rising rates makes many bond investors nervous, leading them to commit to what seems like a simple, easy and safe approach. But buyer beware: There’s one kind of municipal bond strategy that leaves investors’ money on the table in every kind of rate environment. Active & Passive , Fixed Income, Municipals, Rising Rates Likes 0 SHARE Bookmarks
July 05, 2017 The State of the State of Illinois Illinois’s fiscal woes, shaped by years of political gridlock, culminated in a rating downgrade to just above junk status on June 1. A downgrade to junk appears possible. But Illinois could recover its footing, should legislators muster the political will to work together. We know it can be done, because of California’s example. Fixed Income, Municipals Likes 0 SHARE Bookmarks
June 12, 2017 The Truth Behind the Passive Muni Ladder On the surface, passive municipal ladders seem like a sensible investment. Simple. Easy. Cheap. But the numbers don’t lie. Active & Passive , Fixed Income, Municipals Likes 0 SHARE Bookmarks
June 06, 2017 Premium Municipal Bonds: More Bang, Less Buck? by Daryl Clements If investors have ever wondered whether it’s worth ponying up a premium for some municipal bonds, we think the answer may often be yes. These defensive bonds seem particularly compelling today, when interest rates remain relatively low and both volatility and income are top of mind. Fixed Income, Municipals, Volatility Likes 0 SHARE Bookmarks
May 23, 2017 Healthcare Reform: Healthy for Munis? by Joseph Rosenblum It’s hard to say how healthcare reform will affect the broad municipal bond market. But any new law with the potential to cause millions to lose insurance would be a bitter pill for hospitals. Investors should tread carefully. Fixed Income, Municipals Likes 0 SHARE Bookmarks