HYMB

As people digest the changing Federal Reserve outlook, fixed-income investors may want to hold onto their municipal debt and bond-related exchange traded fund positions. “One area of the U.S. bond market that does merit attention is the municipal market,” according to Russ Koesterich, Global Chief Investment Strategist and Head of the Model Portfolio & Solutions […]

Mounting concern over Puerto Rico’s ability to repay debt obligations could continue to add to volatility in high-yield municipal bond exchange traded funds. High-yield munis dropped off in late June on Puerto Rico default fears but has traded higher since, along with the broader markets. Over the past week, the Market Vectors High Yield Municipal […]

Greece or Puerto Rico. Investors have their pick of default poison, but investors in fixed income exchange traded and mutual funds would do well to monitor goings on in Puerto Rico because the U.S. territory’s imminent default could affect some well-known municipal bond funds. So dire is the situation in Puerto Rico, Gov. Alejandro García […]

With Greece captivating investors’ attention today, the reaction to Puerto Rico’s debt troubles might just be “Oh yeah, Puerto Rico is about to default.” That does not change the fact the U.S. territory cannot pay $72 billion in debts. So dire is the situation in Puerto Rico, Gov. Alejandro García Padilla told the New York […]

Another round of financing problems in Puerto Rico could shake the municipal debt market and bond-related exchange traded funds. According to the island’s Government Development Bank, the government could run out of cash by the end of September and could execute emergency measures, such as holding debt repayments, reports Edward Krudy for Reuters. Specifically, the […]

Even with the specter of higher interest rates looming, some investors are not shying away from municipal bond exchange traded funds. To this point, 2015 has been a banner year for inflows to fixed income ETFs and data indicate muni ETFs are getting in on that action. Investors “have added about $1 billion to ETFs […]

Fixed income exchange traded funds are coming off a record year of asset gathering that saw two bond funds rank among the top 10 ETFs for added assets. To start 2015, municipal bond funds are keeping the torch burning for bond ETFs. “While investors pulled $4.9 billion out of taxable bond mutual funds in the […]

The shrinking municipal bonds market helped munis-related exchange traded funds outperform in the fixed-income space in 2014. However, the favorable supply and demand dynamics may be about to change and begin holding back the munis market. Over the past year, the iShares National AMT-Free Muni Bond ETF (NYSEArca: MUB) rose 8.7%, SPDR Nuveen Barclays Municipal […]

Despite the Puerto Rico debt restructuring concerns, municipal bond exchange traded funds could still advance as new issuance falls to a 13 year low. Over the past month, the iShares National AMT-Free Muni Bond ETF (NYSEArca: MUB) and SPDR Nuveen Barclays Municipal Bond ETF (NYSEArca: TFI) are 0.3% higher. Year-to-date, the two ETFs have gained […]

Passively managed exchange traded funds usually do not make wholesale changes to their portfolios. Most of the underlying indices for passive ETFs rebalance quarterly and even then, holding and sector changes often boil down to just a few basis points. However, there are circumstances where issuers of passive ETFs opt to take a more active […]

Municipal bonds, along with related exchange traded funds, are trading at their deepest discount to U.S. Treasuries in four months after another round of debt concerns over Puerto Rico’s finances sparked a sell-off in muni funds. High-yield muni ETFs suffered the brunt of the blow, with the Market Vectors High Yield Municipal Index ETF (NYSEArca: […]

Fixed-income exchange traded fund investors have been hearing about the rate risk in long-term bonds, but now some are sounding the alarm on short-duration debt. “Last year, we were concerned primarily with reducing interest-rate risk by selling high grade (largely AAA and AA-rated) long-maturity municipal bonds and reinvesting in a combination of intermediate-term, investment-grade municipal […]

After the Detroit’s bankruptcy hindered demand, municipal bonds, along with related exchange traded funds, are posting robust gains on huge inflows. Year-to-date, the iShares S&P National AMT-Free Muni Bond ETF (NYSEArca: MUB) is up 6.3%, SPDR Nuveen Barclays Municipal Bond ETF (NYSEArca: TFI) rose 6.4% and Market Vectors Intermediate Municipal Index ETF (NYSEArca: ITM) increased […]

High-yield municipal bonds and related exchange traded funds have been rallying alongside the strongest run-up in speculative debt since 2009, and now, Morgan Stanley (NYSE: MS) is sounding a warning. Michael Zezas, chief muni strategist at Morgan Stanley, argued that the outlook for speculative-grade bonds to continue to beat the market is diminishing, Bloomberg reports. […]

Increased tensions in Eastern Europe sent U.S. stocks tumbling Friday with the Nasdaq the worst offender among the major U.S. indices with a loss of nearly 2%. For the week the S&P 500 closed modestly lower. With the U.S. and Western allies threatening additional sanctions against Russia as a result of its actions in Ukraine, […]

Municipal bonds and related exchange traded funds have been among the top performers in the fixed income space this year as declining Treasury yields have lifted muni bonds following last year’s decline at the hands of surging Treasury yields. Those falling Treasury yields and a strengthening U.S. economy are encouraging investors to hunt for higher […]

After three credit ratings agencies downgraded the commonwealth territory, Puerto Rico municipal bonds have rallied and is now offering $3 billion in bonds. Investors interested in gaining exposure to Puerto Rican debt can take a look at a couple high-yield municipal bond exchange traded funds. Puerto Rico is offering $3 billion in general-obligation municipal bonds […]

Exacerbated by Detroit’s bankruptcy filing, Illinois’ unfunded pension obligations and Puerto Rico distress, municipal bond exchange traded funds were battered as rates steadily rose since the start of May. Muni bond yields have increased faster than other fixed-income assets his year, according to a S&P Dow Jones Indices note. Bond prices and yields have an […]

Municipal bond exchange traded funds, once a favored destination for conservative, income-seeking investors, have come under pressure this year. Rising interest rates, which have adversely affected muni ETFs, are only part of the reason. The specter of massively under-funded public pension liabilities across, highlighted by Detroit’s bankruptcy, has made some investors skittish about an asset […]

The Vanguard Short-Term Bond ETF (NYSEArca: BSV), one of this year’s most prolific asset gatherers among bond ETFs because of its low duration, has yields not much more than 1%. The iShares TIPS Bond ETF (NYSEArca: TIP) has a 30-day SEC yield of just 1.45%. Sure, the 3.45% 30-day SEC yield found on the iShares […]

Municipal bond exchange traded funds have been performing quite well over the past few years as investors sought yield options beyond Treasuries. However, muni bond investors should expect lower returns in 2013, according to BlackRock (NYSE: BLK). Peter Hayes, BlackRock’s head of muni debt, expects municipal bonds to generate lower returns in 2013 than the […]

The government is reportedly scrutinizing the tax-exempt status on municipal bonds as it heads into the “fiscal cliff.” However, disregarding the favorable tax treatment, muni bonds and exchange traded funds are still attractive investments. Municipal bonds typically have higher yields, compared to other taxable government bonds, and the credit quality will improve along with a […]

The $3.7 trillion municipal bond market has been on a solid two year run with a 20% gain, according to Bof A Merrill Lynch data. Analysts at Morgan Stanley now predict that investors need to brace themselves for the first year of losses within this sector, including focused muni-bond exchange traded funds. “The margin for […]

Municipal bonds and related exchange traded funds have enticed investors with their tax-exempt status on the income they provide. Now with the so-called fiscal cliff threatening broad tax hikes, some speculate that munis could lose their favorable tax treatment. However, it’s unlikely this would happen. Congress always seems to revisit the municipal bond tax-exempt status […]

Municipal bond exchange traded funds have enjoyed a solid uptrend since the beginning of 2011 despite a brief hiccup due to Meredith Whitney’s doomsday default prediction that didn’t play out. Now muni ETFs are at multiyear highs with expectations taxes will rise next year providing the asset class with a tailwind after Obama’s re-election. The […]

In the ongoing search for yield, some have branched out to high-yield municipal bond exchange traded funds, but investors will need to consider specific risks associated with the muni market. Investors funneled $43 billion into muni bond funds, with $10 billion going into high-yield municipals, over the first nine months, reports Steven Rosenbush for The […]