Secondary bond market

Starting on March 10, ETF prices consistently diverged from benchmark indices and were underpriced for about 10 trading days before converging again.

Technical and fundamental concerns surrounding credit and supply could present challenges for the market going forward but participants tepidly welcomed signs of stability.

Due to the coronavirus, a plant in Indiana may not be able to make its bond payments.

Confidence in the municipal market among participants has been boosted by the Fed purchase program, but some expect that if equities dive amid more coronavirus fears or re-test March lows, munis could be rattled once again.

By trading electronically — the international standard — and providing regulatory reporting support as a result, the firm said it broadens the ability for foreign investors to buy munis.

The municipal bond market is taking it slow when it comes to new issuance as buyers and sellers move cautiously in the shadows of COVID-19.

Banks, asset managers, and other financial institutions need liquidity. This has created an unprecedented buying opportunity, with yields not seen since the financial crisis and then only seen for a short period of time.

The Fed will help the muni market navigate the short-term pain caused by coronavirus via direct purchases of bonds on the short end. However, the Fed will effectively hand off the responsibility to choose winners and losers to state officials, a move the market generally greeted positively.

Christopher Philips, CFA, head of Vanguard Institutional Advisory Services, discusses the importance of asset allocation during uncertain times as the coronavirus hits investors’ portfolios. He talks about looking at the fundamentals while distancing from the day-to-day value fluctuations. John Hallacy hosts this podcast, which was recorded March 20.

The market appears to be moving toward some semblance of normal conditions as the new-issue pricings and moderating bid volume create a more stable tone.

Tax-exempt and taxable deals priced as dealers opened up their balance sheets to new issues while the market still awaits word from the Fed on coronavirus-led purchase programs.

The state's ratings are low investment grade, but the secondary market is pricing its bonds as high-yield.

With Fed purchases on short end, more deals are showing up on the calendar and this week may become the testing ground for reopening the primary as participants gauge volatility and rates.

The coronavirus has ravaged nerves worldwide and spread its gloom into the financial sector. The U.S. municipal bond market is slipping into park from neutral as most issuers and underwriters await a better day.

There will be more queasiness ahead of any calm in municipals as adjustments to the coronavirus-induced climate continue to test the market’s resolve.

Forced selling continues and credit spreads are widening as much as 200 basis points in spots making for a large bid-ask disconnect in the market.

Coronavirus-led fears are leading investors, particularly retail, to cash once again amid uncertainty surrounding how much and what maturities of municipal bonds the Fed will purchase once its program begins.

The primary market remained mostly on the sidelines with issuers slow to jump back into coronavirus-driven volatility while also awaiting Fed engagement.

The CARES Act gives the Federal Reserve and Treasury up to 10 days to begin purchasing municipal securities in the secondary market.

A more measured tone settled in on Monday as new deals begin to price in a coronavirus-weary marketplace. Municipal credit is beginning to come into focus.