I'm not sure it's a good thing or not in light of the estimated 100 or so municipalities which may default on their bonds, but Bank of America (NYSE:BAC) was the top underwriter for municipal bonds in the first quarter; both for short- and long-term bonds.
Municipal bonds sales pulled back dramatically in the quarter, as concerns over the depth of the potential defaults become national news. Fears are been allayed some as to how widespread that may be, but it appears it's not as bad as originally thought, but some areas of the country will definitely default in 2011.
In the first quarters municipal bond sales dropped to $47 billion, the lowest number in 11 years.
Bank of America's sales came to $6.1 billion in the quarter on 61 deals. Following them was JPMorgan Securities LLC (NYSE:JPM) with 63 deals coming to $5.4 billion, Morgan Stanley (NYSE:MS) with 33 deals $4.3 billion, and Citigroup (NYSE:C) with 53 deals reaching $3.9 billion.
Bank of America was trading at $13.52, up $0.19, or 1.39 percent, as of 12:46 PM EDT.
Showing posts with label Municipal Bonds. Show all posts
Showing posts with label Municipal Bonds. Show all posts
Friday, April 1, 2011
Friday, March 4, 2011
SPDR S&P 500 (SPY), iShares Russell 2000 (IWM), Energy Select Sector SPDR (XLE), iShares MSCI Emerging Markets Fund Lead Weekly ETF Inflows
ETFs led the way for inflows for the week ending March 2, with SPDR S&P 500 (SPY), iShares Russell 2000 (IWM), Energy Select Sector SPDR (XLE), iShares MSCI Emerging Markets Fund the top for funds in the sector.
Municipal bonds continue to hemorrage capital, as outflow, including mutual funds and ETFs was over $1 billion.
For the SPDR S&P 500 (NYSEArca:SPY) led the way for mutual funds and ETFs, with an inflow of $3.7 billion. It closed Thursday at $133.47, up $2.26, or 1.72 percent.
The iShares Russell 2000 (NYSEArca:IWM) attracted $960 million in new money. It closed at $82.80, gaining $1.84, or 2.27 percent.
The Energy Select Sector SPDR (NYSEArca:XLE). The sector fund had $895 million in net inflow. It closed at $78.84, up $1.33, or 1.72 percent.
The iShares MSCI Emerging Markets Fund (NYSEArca:EEM), which had $867 million in net inflow, closed at $46.85, up $0.91, or 1.99 percent.
Municipal bonds continue to hemorrage capital, as outflow, including mutual funds and ETFs was over $1 billion.
For the SPDR S&P 500 (NYSEArca:SPY) led the way for mutual funds and ETFs, with an inflow of $3.7 billion. It closed Thursday at $133.47, up $2.26, or 1.72 percent.
The iShares Russell 2000 (NYSEArca:IWM) attracted $960 million in new money. It closed at $82.80, gaining $1.84, or 2.27 percent.
The Energy Select Sector SPDR (NYSEArca:XLE). The sector fund had $895 million in net inflow. It closed at $78.84, up $1.33, or 1.72 percent.
The iShares MSCI Emerging Markets Fund (NYSEArca:EEM), which had $867 million in net inflow, closed at $46.85, up $0.91, or 1.99 percent.
Wednesday, February 16, 2011
Citigroup (NYSE:C), JPMorgan (NYSE:JPM), Others to Offer Billions in Municipal Loans
In what could become a disaster, the Wall Street Journal reported (citing unidentified banking executives) that Citigroup (NYSE:C) and JPMorgan (NYSE:JPM), among other financial institutions, are piling up billions in order to make loans to various municipalities across the nation.
The purpose of the loans will be to refinance existing obligations or for the development of various, new projects.
why the banks are setting aside the money is to create an alternative to the bond market.
Wait a minute! I thought there were no problems with municipal bonds; that there were no real threats of default as Meredith Whitney and Warren Buffett have stated.
If there aren't, why are the giant banks putting the billions aside for then?
This is a disaster waiting to happen. Of course if the state, regional and local governments are able to pay the loans, they can just get it from the taxpayers via Ben Bernanke's Federal Reserve.
I thought the reason for the route in the House was because of out-of-control spending? If that's the case, then voters need to remind their representatives they need to slash the size of government and spending, not go even further into debt.
What is it these governments don't understand. Even the Federal Reserve knows the economy isn't growing fast enough to create new jobs.
With that being the case, what economic miracle do these governments think is going to happen to suddenly pay off these loans?
Something smells here. These banks shouldn't be allowed to borrow money to various bankrupt municipalities, creating more extraordinary risk into the economy.
Just because declaration complete default hasn't happened has nothing to do with the reality that dozens of cities and counties are on the verge of governmental economic collapse.
The most responsible thing to do is to admit the promises made to people aren't sustainable, and from there start eliminating the endless number of programs all the levels of government have instituted.
This only confirms the collusion between the giant banks and the federal government.
The purpose of the loans will be to refinance existing obligations or for the development of various, new projects.
why the banks are setting aside the money is to create an alternative to the bond market.
Wait a minute! I thought there were no problems with municipal bonds; that there were no real threats of default as Meredith Whitney and Warren Buffett have stated.
If there aren't, why are the giant banks putting the billions aside for then?
This is a disaster waiting to happen. Of course if the state, regional and local governments are able to pay the loans, they can just get it from the taxpayers via Ben Bernanke's Federal Reserve.
I thought the reason for the route in the House was because of out-of-control spending? If that's the case, then voters need to remind their representatives they need to slash the size of government and spending, not go even further into debt.
What is it these governments don't understand. Even the Federal Reserve knows the economy isn't growing fast enough to create new jobs.
With that being the case, what economic miracle do these governments think is going to happen to suddenly pay off these loans?
Something smells here. These banks shouldn't be allowed to borrow money to various bankrupt municipalities, creating more extraordinary risk into the economy.
Just because declaration complete default hasn't happened has nothing to do with the reality that dozens of cities and counties are on the verge of governmental economic collapse.
The most responsible thing to do is to admit the promises made to people aren't sustainable, and from there start eliminating the endless number of programs all the levels of government have instituted.
This only confirms the collusion between the giant banks and the federal government.
Friday, November 19, 2010
Eaton Vance (NYSE:EV) Facing Negative Muni Flows
Eaton Vance (NYSE:EV) will continue to struggle according to Ticonderoga, based largely on their exposure to Municipal bonds, which have turned negative this week.
"ICI flows continue to show strong flows into international equity (+$2.3bn), small outflows out of domestic equity (-$677mm) and stable taxable flows (+$4.1bn). However, municipal flows turned negative this week for the first time since April 14, 2010 (-$115mm). This is only the second week munis have been negative going back to 2/25/2009...Managers With Muni Exposure to Be Pressured by Flow Trends, Recent Sell-Off," said Ticonderoga.
Consequently, they maintain a "Sell" rating on Eaton Vance, which closed Thursday at $29.85, rising by $0.57, or 1.95 percent. They have a price target of $25 on Eaton.
"ICI flows continue to show strong flows into international equity (+$2.3bn), small outflows out of domestic equity (-$677mm) and stable taxable flows (+$4.1bn). However, municipal flows turned negative this week for the first time since April 14, 2010 (-$115mm). This is only the second week munis have been negative going back to 2/25/2009...Managers With Muni Exposure to Be Pressured by Flow Trends, Recent Sell-Off," said Ticonderoga.
Consequently, they maintain a "Sell" rating on Eaton Vance, which closed Thursday at $29.85, rising by $0.57, or 1.95 percent. They have a price target of $25 on Eaton.
Thursday, August 26, 2010
Loews (NYSE:L) CEO Tisch Recommends Exxon Mobil (NYSE:XOM)
Loews Corp. (NYSE:L) CEO James Tisch, said in light of the plunge in yields of municipal bonds and Treasuries, investors should look at stocks like Exxon Mobil (NYSE:XOM) in the near term.
In a Bloomberg interview, Tisch said, “There are equities that are rather intriguing, especially when compared to fixed income. When I look at what we’re earning on T bills and round it to the closest whole number, it’s zero.”
“We’re actually investing in stocks, in large cap, good dividend-paying stocks,” added Tisch. “Who would have thought five or 10 years ago that a 3 percent yield on a stock would be a good yield? But actually today it’s a very good yield.”
The dividend yield for Exxon Mobil is 3 percent as of Tuesday's closing at $58.94, along with a payout of 54 cents a share.
In a Bloomberg interview, Tisch said, “There are equities that are rather intriguing, especially when compared to fixed income. When I look at what we’re earning on T bills and round it to the closest whole number, it’s zero.”
“We’re actually investing in stocks, in large cap, good dividend-paying stocks,” added Tisch. “Who would have thought five or 10 years ago that a 3 percent yield on a stock would be a good yield? But actually today it’s a very good yield.”
The dividend yield for Exxon Mobil is 3 percent as of Tuesday's closing at $58.94, along with a payout of 54 cents a share.
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