a historic difference inwards the lead of munis relative to Treasuries. This weakness of late led PIMCO to suspend dividends inwards its municipal closed-end funds.
While automakers convey gotten close the tidings this by week, the eroding status of tax-free credit markets may pose graver problems for municipalities too the many high cyberspace worth investors who convey sought shelter inwards tax-free instruments. The dynamics that convey led to this historic weakness--a severe recession slashing solid soil too local revenues too a flying of investors to security too liquidity--show no sign of abating, too cost declines proceed to erode returns from otherwise attractive yields. Meanwhile, the Fed has explicitly stated that it cannot aid solid soil too local governments, too Treasury has denied access to TARP amid municipalities, farther heightening investor anxieties.
.
No comments:
Post a Comment