Tag Archives: Municipal Bonds

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The SALT (State and Local Taxes) Conundrum

Author: John R. Mousseau, CFA, Patricia Healy, CFA, & Gabriel Hament, Post Date: February 12, 2019
Market Commentary - Cumberland Advisors - The SALT (State and Local Taxes) Conundrum (Municipal Bonds)

There have been headlines recently describing the drop in state tax revenues versus forecasts for some of the higher-tax states such as California, New York, and New Jersey. Part of the falloff is due to an exodus of higher-income residents from high-tax states, such as the ones above, for states with low or no income […]

Deals pour in to slightly firmer market

Author: , Post Date: January 17, 2019
Cumberland Advisors John Mousseau

Excerpt from… Deals pour in to slightly firmer market By Aaron Weitzman Christine Albano Published January 15 2019, 1:50pm EST New deals were rolling in, with timing benefiting issuers as the market firmed. Strong demand will likely lead to oversubscriptions on the Pennsylvania Housing Finance Authority deal after a significant portion of the longer maturities […]

Buyer Beware

Author: Shaun Burgess, Post Date:
Cumberland Advisors - Shaun Burgess - Portfolio Manager & Fixed Income Analyst

In a move that caught many observers by surprise, the Federal Oversight and Management Board (FOMB), which was created to oversee the restructuring of the Commonwealth of Puerto Rico, has requested that Judge Swain invalidate more than $6 billion of the territory’s debt. The move would affect uninsured general-obligation bonds issued in 2012 and after. […]

Climate change, a rising tide affecting the muni market

Author: , Post Date: January 9, 2019
Cumberland Advisors John Mousseau

Excerpt from… Climate change, a rising tide affecting the muni market By Sarah Wynn Published January 08 2019, 12:45pm EST WASHINGTON — Portfolio managers are feeling the heat when it comes to investing in bonds that could potentially be affected by climate change. Climate change has long been a point of political and social contention, […]

Q4 2018 Credit Commentary and a Look Ahead to 2019

Author: Patricia Healy, CFA, Post Date: January 8, 2019
Cumberland Advisors - Q4 2018 Credit Commentary and a Look Ahead to 2019

Has The Municipal Credit Cycle Plateaued? Many positive indicators suggest that the municipal credit cycle has yet to plateau. Upgrades continue to outpace downgrades; the US economy is still growing; federal tax reform boosted revenues in fiscal 2018; and rainy day funds or reserve levels in many localities are strong. However, pressures continue to confront […]

4Q2018 Review: Munis Turn It Around

Author: John R. Mousseau, CFA, Post Date: December 28, 2018
Market Commentary - Cumberland Advisors - 4Q2018 Review Munis Turn It Around

Muni yields rose in the first six weeks of this quarter – mostly in sympathy with US Treasuries (UST). We saw the 10-year and 30-year Treasury bonds rise 20 and 25 basis points respectively. Since early November, AAA muni yields (AAA) have dropped across the board, and the 10-year Treasury yield has fallen a whopping […]

Is the Municipal Bond Market Sleepy?! Pension Doomsday?

Author: Patricia Healy, CFA, Post Date: November 19, 2018
Market Commentary - Cumberland Advisors - Is the Municipal Bond Market Sleepy - Pension Doomsday

Today’s municipal bond market is anything but “sleepy,” as Spencer Jakab characterized it in his Wall Street Journal article “Prophet of Muni Market Doom Wasn’t Wrong, Just Early” (10/26/2018). The Prophet of Doom he referred to was Meredith Whitney, who shortly before the financial crisis successfully predicted the damage to Citibank by bad mortgages. In […]

California, Land of Natural Disasters?

Author: Patricia Healy, CFA, Post Date: November 13, 2018
Market Commentary - Cumberland Advisors - California, Land of Natural Disasters

Last week we conducted a review of our California municipal bond holdings along the San Andreas Fault looking for holdings that may be more susceptible to credit deterioration in the event of a disaster. At the time, little did we know that wildfires would engulf large swaths of California. First, our hearts and prayers go […]

Investors speculate on return of crisis-era Build America infrastructure bonds under split Congress

Author: , Post Date: November 9, 2018
Cumberland Advisors John Mousseau

Investors speculate on return of crisis-era Build America infrastructure bonds under split Congress This infrastructure-bond structure, backed by federal subsidies, could face uphill battle in Congress. With Democrats sweeping into the House in the midterm elections, analysts are touting the potential comeback of crisis-era municipal bonds as part of a broader infrastructure bill. Talk of […]