I'd probably pass on it and the whole Canadian
municipal bond sector.
Muni national bond funds are mutual funds that provide investors with exposure to the domestic
municipal bond sector.
Not exact matches
This has been the best performing
bond sector over the last year, according to Bloomberg data for the Barclay's
Municipal index.
Like most
sectors of the fixed - income market,
municipal bonds struggled in the first quarter as yields climbed higher.
In the U.S., deteriorating urban finances — from Detroit to Stockton, Calif. — threaten
municipal bond holders, public -
sector workers, and taxpayers.
The major
bond market segment that most investors concentrate on is the high - quality
sector: U.S. government
bonds, high - grade corporate
bonds and high - grade
municipals.
Sectors of the
municipal bond market outperforming include the much tobacco settlement
bond sector up 11.8 % year - to - date.
In contrast, the S&P
Municipal Bond Nursing Index was the
sector loser, finishing the quarter up just 0.22 % YTD.
Fixed income
sectors shown to the right are provided by Barclays and are represented by the following Bloomberg Barclays Indices — Treasury Inflation Protected Securities: U.S. Treasury Inflation - Protected Securities (TIPS) Index; Floating Rate Loans: US Floating - Rate Note Index (BBB); Asset - backed securities: US Asset - Backed Securities Index; High Yield: US Corporate High - Yield
Bond Index; Convertibles: US Convertible
Bond Index; Mortgage - backed securities: US Aggregate Securitized MBS Index; Broad Market: US Aggregate
Bond Index;
Municipals:
Municipal Bond 10 - Year Index; Investment Grade Corporates: US Corporates Index
The strategy seeks to add value by capitalizing on imbalances in the relationships among
sectors and individual
bonds, spanning both tax - exempt
municipals and US - dollar denominated taxable
bonds.
Two of the largest risks are that the average credit quality of
bonds in this
sector is well below investment grade and the heavy issuance of zero coupon
bonds creates a
sector that has one of the longest durations in the
municipal bond market.
Sectors within the
municipal bond market are each unique and have their own set of risks and that holds true for defaulted
bonds.
Taxable
municipal bonds offer yields comparable to those of other taxable
sectors, such as corporate
bonds.
This has been the best performing
bond sector over the last year, according to Bloomberg data for the Barclay's
Municipal index.
Sectors of the boring
municipal bond market have seen equity like returns in 2017.
Choosing
bonds of different types (government, agency, corporate,
municipal, mortgage - backed securities, etc.) creates protection from the possibility of losses in any particular market
sector.
Many funds target
bond sectors (just like stocks), so would focus on US Treasuries, or
municipal bonds.
Similar issues arise for callable
bonds in the American
municipal, corporate, and government agency
sectors.
The tailwind for high yield
municipal bonds was fueled by rebounds in both the Puerto Rico
bond market and the tobacco settlement
bond sector.
Fixed income
sectors shown above are provided by Barclays and are represented by — Broad Market: U.S. Aggregate
Bond Index; MBS: U.S. Aggregate Securitized - MBS Index; Corporate: U.S. Corporates;
Municipals: Muni
Bond 10 - year Index; High Yield: US Corporate High Yield
Bond Index; TIPS: Treasury Inflation Protected Securities (TIPS).
The highest - returning
sector in Q1 2015, the S&P
Municipal Bond Tobacco Index (3.66 % Q1 2015), joined dedicated tax
municipals on this quarter's loser list after falling 1.11 % in Q2 2015, shaving the YTD return to 2.50 %.
Previously at Putnam, Mr. Drury spent a decade as Head of Trading,
Municipal Bonds, where he worked closely with Putnam's portfolio managers to execute trades in various sectors of the municipa
Municipal Bonds, where he worked closely with Putnam's portfolio managers to execute trades in various
sectors of the
municipalmunicipal market.
The debate over which
sector of
municipal bonds, general obligation
bonds (G.O.'s) or revenue
bonds can provide a better return is a constant one.
HTAB seeks to add value by working to capitalize on imbalances in the relationships among
sectors and individual
bonds, spanning both tax - exempt
municipals and US dollar - denominated taxable
bonds.
The corporate
bond sector of the
municipal bond market has historically been one of the
sectors where
bonds have a higher propensity to default.
One bright light is the
municipal high yield bond market as the S&P Municipal Bond High Yield Index is up 0.82 % year - to - date helped by positive performance in May by Puerto Rico bonds and a recovery over 3.2 % of the Tobacco Settlement bon
municipal high yield
bond market as the S&P Municipal Bond High Yield Index is up 0.82 % year - to - date helped by positive performance in May by Puerto Rico bonds and a recovery over 3.2 % of the Tobacco Settlement bond sec
bond market as the S&P
Municipal Bond High Yield Index is up 0.82 % year - to - date helped by positive performance in May by Puerto Rico bonds and a recovery over 3.2 % of the Tobacco Settlement bon
Municipal Bond High Yield Index is up 0.82 % year - to - date helped by positive performance in May by Puerto Rico bonds and a recovery over 3.2 % of the Tobacco Settlement bond sec
Bond High Yield Index is up 0.82 % year - to - date helped by positive performance in May by Puerto Rico
bonds and a recovery over 3.2 % of the Tobacco Settlement
bond sec
bond sector.
Helping to push down the high yield market is the long duration tobacco settlement
bond sector, the S&P Municipal Bond Tobacco Index is down 4.32 % month to d
bond sector, the S&P
Municipal Bond Tobacco Index is down 4.32 % month to d
Bond Tobacco Index is down 4.32 % month to date.
The Index excludes those
sectors of the
municipal bond market that have historically represented higher risks when compared to investment grade General Obligation and essential purpose
bonds.
Our laddered portfolios seek to diversify
sector and issuer exposure and are constructed using high quality
municipal bonds whose maturities are staggered from one to six, 12 or 18 years — ranges chosen specifically in an effort to add value.
With the ability to draw on the
bond, equity, and macroeconomic experts at Wellington Management, the portfolio managers seek to exploit inefficiencies across more than a million
bonds in the
municipal bond markets and build a portfolio that is diversified by geography,
sector, and credit quality.
The
municipal rating recalibrations are a way to align
municipal bonds with debt from other
sectors.
Darryl is also active in advising clients in connection with tax - exempt
municipal bond financings, primarily in the healthcare and educational
sectors.