Municipal Bond Market Overview

by Jim Baird on April 7, 2011

Headlines Don’t Match Reality in Municipal Market

Many prudent investors read the Wall Street Journal, Barron’s, and other respected news outlets to stay apprisesd of market events that may impact their portfolios.  For municipal bond investors, it’s become an almost daily event that these news outlets portray a dire circumstance in store for the municipal bond market. Meredith Whitney captured attention with her prognostication that there will be “hundreds of billions of dollars’ worth of defaults” as did a recent headline in the New York Times that stated “A Path Is Sought for States to Escape Their Debt Burdens,” amid speculation from Capitol Hill that there will be legislation introduced to allow states to file bankruptcy.   How concerned should investors be?  

Our Investment Research team recently completed a research paper entitled, “Municipal Bond Market Outlook: Stay the Course, But be Prudent.”  This report provides an overview of the current state of the Municipal bond market, including recent events and what they may mean for investors.  The full report can be accessed via the link below:

 

Municipal Bond Market Outlook: Stay the Course, But be Prudent 

 

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