Posts Tagged ‘bankruptcy’

Blessed Are Municipals

April 11th, 2016 by Kurt L. Smith

Rare is my newsletter with good things to say. How about “it is good to be an investor in municipal bonds!” As I wrote several months back, municipals were one of the top performing sectors last year. Now we are going to discover how long the ride may be.

I am not recanting my position that Bonds peaked in price (bottomed in yield) way back in 2012. I stand by my position. But after a quick swoon in 2013, municipal bond prices have been rising and have remained quite firm (low volatility) as they have made their way back towards the highs of 2012.

Low volatility and rising prices…in this market!? This is certainly a recipe for those not familiar with municipal bonds to get acquainted. Municipals appear to be a bright spot, not only in the fixed income markets, but in investing in general. (more…)

“Welcome To The Everything Boom”

July 20th, 2014 by Kurt L. Smith

The July Letter almost didn’t make it as the same old, same old markets continued their gravity defying ways. On July 7th however, The New York Times saw fit to publish this headline as their front-page lead: “From Stocks to Farmland, All’s Booming, or Bubbling.” (more…)

Great Success

November 11th, 2013 by Kurt L. Smith

The financial markets spent most of October peaking so why should I add my usual dose of downer? Instead, in the spirit of thanks and Thanksgiving, why not look back at some of our successes and revisit why we choose the path we do. (more…)

Exceptional Exceptions

August 30th, 2013 by Kurt L. Smith

In a world that includes dozens of US Treasury bond issues (but just one credit) or hundreds of Corporate bond issuers, Municipal bonds offer tens of thousands of different credits, terms and conditions. It is these differences, rather than their similarities, between issuers and issuances that account for the robustness of the municipal bond market. (more…)

Detroit and You

August 2nd, 2013 by Kurt L. Smith

Contrary to popular opinion, things do actually happen in the municipal bond market. Sometimes we wait years, even decades, before taking action, but actions do happen, eventually. Municipal bankruptcies have occurred, will occur, and are getting bigger. (more…)

Bankruptcy: When The Can No Longer Can Be Kicked

August 1st, 2012 by Kurt L. Smith

As the financial crisis enters its sixth year we find municipalities and their bonds increasingly in the news. Municipal woes appear to be on the rise. Therefore it is important to realize how unique each municipality is as well as how unique all of their municipal bonds can truly be. There is no such thing as a generic municipality nor is there any such thing as a generic municipal bond. Every municipality is different. Every municipal bond is different and therein lies the opportunity for you, the municipal bond investor.

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