municipal bonds News

After Tax Cuts, Insurers Shy Away from Muni-Bonds

Some of the biggest U.S. insurers reduced their holdings of state and local government bonds after the corporate tax cut took effect this year, marking a retreat by a key buyer in the $3.9 trillion municipal-securities market. The disclosures, made …

Why Tax Cuts May Curb Insurers’ Municipal Bonds Appetite

Put on the Taylor Swift and pull out the Ben & Jerry’s ice cream: The municipal-bond market’s long relationship with property and casualty insurance companies may be breaking up. That’s because last year’s tax overhaul slashed corporate rates to 21 …

Tax Act Could Pose Challenge for Municipal Bond Market

The U.S. municipal bond market emerged bruised but not decimated by the federal tax bill that won final approval in the U.S. Congress on Wednesday , analysts said. The worst-case scenario of Congress yanking the federal tax exemption for interest …

Insurers Caught In Municipal Bond Slump While Awaiting Trump Tax Plan

The disruption in the municipal bond market is punishing some of the most loyal buyers of the debt. The insurance industry has seen more than $5 billion of gains erased on state and local bonds after Donald Trump’s victory in …

ACA Financial Sues Virginia City Over Muni Bond Default

The Blue Ridge mountain hamlet of Buena Vista, Virginia, is in danger of having its City Hall, police headquarters and municipal golf course seized for defaulting on its debt. The city, with 6,600 residents, has failed for more than a …

Some European Insurers, Pension Funds Build Loan Books to Rival Banks

Australian Symon Drake-Brockman is on the front line of a revolution in European finance. The former head of global debt markets at Royal Bank of Scotland now runs Pemberton Asset Management in London’s genteel Belgravia, several miles from the “Square …

Municipal Bond Insurance Sales Expected to Rise With Interest Rates

Demand for municipal bond insurance is poised to increase as rising interest rates reduce investor appetite for riskier state and local debt, according to Janney Montgomery Scott. Bond insurance accounted for 4.4 percent of new muni issuance last quarter, up …

Alabama County Bankruptcy Workout a Test for Municipal Bondholders

Alabama’s Jefferson County will brief a federal judge on Thursday on its progress toward exiting from bankruptcy, as the county appears likely to become the first big U.S. local government to impose losses on bondholders since the 1930s. The case …

Municipal Defaults — Already 21 in 2012 — Another Blow for Bond Insurers

A growing number of U.S. cities are choosing to fund essential services like public safety and garbage collection over making payments on their outstanding debt, as rising costs and falling revenue deplete their budgets. So far, the bond defaults are …

P/C Insurers Can Handle Muni Bond Stress: Moody’s

The U.S. property/casualty insurance industry, which has about 60 percent of its equity capital base or — $355 billion– in municipal bonds remains exposed to disruptions in this asset class, but the overall level of risk continues to be manageable, …