Muni Think

The notion of option-adjusted spread (OAS) is the standard analytical tool for taxable fixed income securities. It is also making inroads into the muni market. Unfortunately the usual implementation for munis is flawed, rendering the results virtually meaningless. So it is understandable that many muni professionals shy away from OAS in favor of the archaic ‘yield-to-worst’ approach. Correct implementation would undoubtedly attract converts.

The slowing Chinese economy and the strong U.S. dollar have the potential to impact export oriented industries in the U.S.

The second wave of underwriter settlements was similar to the first, but with some new details on issuers failures to comply with prior continuing disclosure undertakings.

Rating upgrades overlook rural and secondary markets with high unemployment and aging demographics that will continue to challenge hospitals in those markets.

Recent MCDC settlements provide guidance concerning the scope of materiality in continuing disclosure obligations.

As many communities struggle, the capital necessary for investment may be hidden in plain sight with community development finance institutions.

This week we explore the challenges often faced by Issuers and Underwriters in navigating the municipal bond disclosure regime. We also take an early look at the impact of the reopening of the SLGS window.

The SEC recently approved a new set of rules that would likely alter the behavior of one of the municipal bond market's largest, and one of the most influential, investor segments of the industry — mutual funds. Surprisingly, the industry appears not to be considering its full implications outside of a few closed circles.

Rhode Island and Michigan top the list of most improved States over the last year. Notable underperformers from the bottom ten are New Jersey, Pennsylvania, and Virginia.

The Administration has concluded that, as part of a comprehensive approach to Puerto Rico's crisis, a tested federal bankruptcy regime is necessary.