Water and sewer revenue bonds can be an essential building block of a municipal bond portfolio for most municipal bond investors. The water and sewer segment of the municipal bond market is a coveted one because of its essentiality. These bonds are used to construct or expand water and sewer lines for municipalities. Typically these […]
PUERTO RICO BONDS SLIP AS REALITY SETS IN THAT THE COMMONWEALTH LACKS SUFFICIENT RESOURCES TO PAY ITS HEFTY DEBTS Reality set in for investors of Puerto Rico bonds as prices weakened significantly as the federal oversight board agreed with Puerto Rico’s Governor that you just can’t get blood from a stone. The oversight board […]
President Donald Trump has pledged to implement a plan for sweeping tax reform. Cutting individual tax rates across the board and reducing the number of tax brackets from the current seven to three. The question is how will this effect demand for municipal bonds? Interest earned on municipal bonds is exempt from Federal income tax […]
In his first address to Congress as President of the United States, Donald Trump presented them with his plan for $1 trillion in infrastructure spending to improve our country’s crumbling roads, structurally deficient bridges, and outdated airports. While few can debate the necessity of the work, especially in light of highly publicized infrastructure emergencies in […]
Kicker Bonds | Your tool to fight rising interest rates One of the most effective tools available to a fixed income investor with the cloud of rising interest rates hanging of over the market are kicker bonds. Forbes has even been touting the strategy as far back as 2010. The MSRB defines a kicker bond as: “A callable high coupon […]
Investors in the municipal bond market space might want to exercise caution when investing in municipal bonds backed by small private colleges and universities. That is not to say they are all bad, since there certainly are financially stable schools that back today’s municipal bonds. However, bond buyers should take notice on account of the […]
