Fixed Income Market Insights
Our latest insights on bond market activity
Shifts in Federal Education Oversight and Mixed Fed Signals Shape Year-End MUNI Tone
We have been discussing higher education as well as health care for quite a while. The Trump administration said it will transfer some of the Education Department’s most extensive grant programs and major portions of several offices to other federal agencies, part of a broader plan to reduce the department’s authority significantly.
Negotiated vs. Competitive New Bond Issues – Does It Matter to the Investor?
When investors buy municipal bonds, they give very little attention to how the issue comes to market. The question here is, does it really matter?
Illinois RTA Credit Strengthens; Markets Brace for Possible December Rate Cut
Moody’s indicated it may upgrade the Illinois Regional Transportation Authority’s debt after the state legislature moved to eliminate the public transit system’s budget shortfalls.
Read our latest musings about actions and events affecting the investment landscape.
Rates, Risks, and Realignment: Fed Watch Intensifies as Jackson Hole Takes Center Stage
With Jackson Hole this week, we are seeing a lot of news regarding the FED. Most FED officials highlighted inflation risks as outweighing concerns over the labor market at their meeting last month.
Brightline Faces Record-High Yield Amid Debt & Ridership Struggles; MTA Earns Upgrade
• Brightline, the private rail line linking Orlando to Miami, refinanced $985M of junior debt at a record-high 14.89% yield, reflecting deep investor concern after delaying a July interest payment on $1.2B in munis.
MUNI Update: SEPTA Deadline, Pension Pressures, Puerto Rico Uncertainty
Fed Officials Signal Possible September Rate Cut Amid Labor Softness: Three Fed policymakers — Daly (SF), Cook (Board), and Kashkari (Minneapolis) — expressed concern about a slowing labor market, citing weak July job gains and downward revisions to previous months.
Busy Week in Treasury Borrowing
This is a busy week for US debt issuance as the Treasury auctions off 3-, 10- & 30-year bonds and a heavy load of short-term bills.
Video: Should You Buy Securities with Longer or Shorter Dated Maturities?
Duration: 4:17
Transcript: If you’re looking to buy higher grade securities with a higher rate of return, then you might consider going out a little further. If you are only seeking to build a ladder, one to five years in this example, we can certainly help you with that.
Video: DRL’s Perspective on Credit Quality and Bond Insurers
Duration: 2:01
Transcript: We primarily try to stick with double a rated paper or higher. The reason being is that we feel comfortable with overall credit qualities, double a rated or higher due to the low default rate on those securities.
Video: Our Experience is Your Advantage
Duration: 2:49
Transcript: I got in the business August of nineteen ninety four, and my introduction to the business was Orange County filing bankruptcy. That was a very big moment in the municipal bond world.
Video: Why Does DRL Not Buy Lower Quality Paper?
Duration: 2:11
Transcript: When you’re working with a team that understands the municipal bond world and that also understands credit ratings, credit quality, claims paying ability, specific insurance companies, what to buy and more probably more importantly, what not to buy.
Video: The Difference Between Revenue-backed and General Obligation Bonds
Duration: 4:48
Transcript: Understand the underlying asset and what’s being, generated payment, what payment is being generated from that underlying asset. So we’ve been we’ve been asked a lot about the difference between revenue bonds and general obligation bonds.