The MSRB has said it is amending a pending rule change that would greatly shorten the reporting time standard for municipal bond trades, which could cause problems for certain transactions, dealer firms said.
March had been expected to be difficult due to a "combination of heavy supply, low redemptions, rate volatility, tax-related selling and now fund outflows," said Barclays (JJCTF) strategists Mikhail Foux and Grace Cen.
While the White Lake, Michigan, township hack is the best-known and publicly disclosed cyberattack, there have been others. Some issuers and firms are reluctant to share these experiences publicly.
The U.S. Congress is considering eliminating the federal tax exemption for municipal bonds, the single most important financing tool for cities and towns across America. If they do, the cost of building and maintaining infrastructure ? roads, bridges, schools, water systems, and even broadband networks ? will skyrocket.
The Southeast has many of the largest ports and cargo airports in the country along with extensive foreign investment that creates exposure to trade turmoil.
"The supply/demand dynamic is a headwind for the muni market this week as supply is expected to be elevated," said Cooper Howard, a fixed income strategist at Charles Schwab.
SEC probe relating to a cyberattack on a Michigan township's bond sale could involve looking into whether investors are getting an accurate picture of the issuer's credit risk, a former SEC enforcement attorney said.
A city-created corporation plans to issue bonds for the mass transit project, paid off with a voter-approved hike in the maintenance and operations property tax.
State Treasuer Brad Briner said he hopes a longer maximum maturity will lead more borrowers to use the state conduit instead of the Public Finance Authority.
Muni advocates are stepping up pressure on Congress to take the elimination of municipal bond tax exemption off the menu by exploring alternatives and providing numbers showing how short term gains will become long term losses.
The market rally "took a bit of a breather last week, with yields rising across the curve," said Daryl Clements, a portfolio manager at AllianceBernstein.
Moody's Ratings has placed Washington D.C.'s credit rating on review for a possible downgrade for all debt classes due to the Trump administration's cuts to the federal workforce.
Maryland lawmakers proposed a new tax on business-to-business transactions to close a $3 billion budget gap amid the firing of thousands of federal employees.
The U.S. Department of Transportation is signaling a change in infrastructure emphasis by pressing the District of Columbia to address safety issues on the city's streets while also pushing Amtrak and WMATA to boost security and curtail fare evasion.
A district judge in Rhode Island issued a second order telling the administration to halt its grant freeze, saying his first order is not being followed.
"Markets fixate on one risk at a time, and there's no shortage right now. Volatility has spiked, liquidity is thin, and buyers are sidelined ? but that's temporary," said James Pruskowski, chief investment officer at 16Rock Asset Management.
Investors like the 10-year area of the curve because "if they're buying duration, the tax-exempt market is usually going to be one of the best places to buy," said Wesly Pate, a senior portfolio manager at Income Research + Management.
FINRA found that Tradeweb had violated an MSRB rule by failing to include the 'NTBC indicator' when reporting certain municipal securities transactions.
With at least one important aquifer reaching peak allowable draw this year, Florida's water utilities are looking at a variety of infrastructure approaches.
Issuance remains heavy this week, but while it's elevated, the muni market is "structurally undersupplied," meaning if 2024's record level of $500 billion-plus of issuance was doubled, the market could still digest it quite well, said Wesly Pate, a senior portfolio manager at Income Research + Management.
Missouri lawmakers have opened a new salvo in the battle with Kansas over who gets to fund new stadiums for the Kansas City Royals and the Kansas City Chiefs.
The House Committee on Transportation and Infrastructure is in the early stages of hammering out a surface transportation bill designed to prop up the Highway Trust Fund while House Ways and Means tinkers with a tax deal.
Illinois will sell $725 million of junior sales tax revenue bonds in a competitive deal pricing Tuesday. The Build Illinois bonds will fund capital projects.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
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