Interest rate risk

A whopping 91% of Bond Buyer California Public Finance Conference survey respondents expect municipal interest rates will end the year higher than current rates and 73% said rates will have the largest impact on the public finance industry in the next two quarters

The UST selloff and rate fears spooked investors in January, but experts predict more opportunity and a stronger tone for munis in the remainder of the first quarter.

Other concerns include ongoing threats from the coronavirus, inflation and legislative inertia on muni issues in Washington, according to a Bond Buyer survey.

The next milestone in the shift to the Secured Overnight Financing Rate is expected to be the announcement from the U.K.’s Financial Conduct Authority before the end of this year declaring Libor as nonrepresentative.

The survey of 17 economists found they were split over the next interest rate move by the Federal Reserve.

Municipal managers and analysts say the new quarter will see less volatility and more opportunity for value and upside potential.

Cleveland is looking to lock in low fixed rates and eliminate all risks related to the Water System’s hedged debt.

Avoidable inmate deaths in jails allegedly staffed by untrained guards represent a headline and financial risk for counties in Texas.

Improved liquidity, spreads, and flows prompt some first-quarter adjustments.

Topics range from policy changes, regulatory developments, and pensions to interest rates, technology, and market opportunities.

Analysts say lessons from the events of 2018 can forecast what lies ahead in 2019.

Strategists adjust their municipal holdings on signs the worst may be over after a difficult 2018.

Continued selling would put more pressure on an already burdened secondary market.

With municipal yields rising more than they have in years, investors see a rare opportunity for fourth-quarter tax swaps.

Portfolio managers say taxable alternatives have appeared cheaper lately when compared to the short end of the tax-exempt yield curve.

Practitioners want to know what happens to the value of their portfolios if interest rates change.

Muni portfolio manager J.B. Golden combats spread compression with defensive duration, laddering, premium bonds, and a tilt toward credit opportunities.

Investors should minimize risk, upgrade quality, and remain defensive awaiting higher rates and price discovery, according to analyst reports this week.

Tim Heaney of NewFleet Asset Management uncovers yield, credit, and coupon opportunities with a quality-minded strategy.

Retail investors are overcoming concern over interest rates and tax reform by extending duration, upgrading to high-quality, and buying defensive premium bonds.