Municipals
U.S. Investment Grade Corporates: Favorable
Record issuance and oil-related weakness combined to drive the spreads wider but we remain Favorable on these bonds for now.
View from the North Country
Client Questions...What Do You Think About Gold?...How Municipal Bonds Compare With Taxables...Don't Short The Gambling Stocks Yet
Bond Market Summary
Corporates managed a gain in March but Treasuries were weak near month end. Developing an “unbiased” Bond Market Trend Index based on a list of factors that we feel are important in determining the overall health of the long U.S. bond market.
Bond Market Summary
The bond market is in the midst of both secular and cyclical bull moves. The cyclical bull market target zone is 9% yields for T-bonds, maybe much lower on a secular basis. The current correction might run to 12%-12.5% for T-bonds, but we are tempted to start a buying program before that.
Bond Market Summary
In recent weeks the municipal market has been relatively weak compared to other fixed income markets. Long municipal yields are now 89% of long T-bonds, back up to about the levels where we recommended our unorthodox move in early February. It looks like a great opportunity.
Opportunity in the Unlikely
Long-term municipals now extraordinarily cheap relative to other fixed income instruments. Strange as it may seem, Muni’s may even be relatively attractive for non-taxable portfolios.