August 14, 2017
There are some similarities these days between Muni investors and Doomsdayers. Both seek “safe havens” as the world is gripped by uncertainty, and both know a really good investment when they see one. The Doomsday crowd, of course, believes the world is ending any day now and prefer to invest in hard assets, as in “Bunkers With Granite Countertops”, while Muni Investors, fearing safety of principal, duration risk or both, prefer high-grade Muni bonds for safety of principal and current income. As President Donald “What Does This Button Do” Trump went tit-for-tat with Man-Child Kim in last week’s sandbox scuffle, both Muni Investors and...
Gross supply of $227 bil. though the end of last week is -14% YoY. We estimate long-term new issue gross supply for 2017 at $368 bil., for a decline of about $60 bil., or -14%, which incorporates $204 bil. of new money bonds and...
Credit spreads continue to read generally tight across the board, except for ‘AA’ and ‘A’ rated general market names in 10yrs and ‘A’ rated paper in 30yrs. The A-rated space overall has lagged AA and BBB bonds as investors seek out the relative safety (and lower yields) of high-grades or reach for duration and yield in BBBs. We note that A-rated spreads in 10yrs and 30yrs are both...Full Weekly Report
Please find attached Ramirez & Co.’s Quarterly Macroeconomic Outlook. In our report, we continue to monitor the US economy, global events and the Fed’s outlook on the economy and rates:
Members of our Financial Strategies Group, Niso Abuaf, Konstantin Semyonov and Duncan Sinclair, would be happy to discuss further any of the material with you.Full Quarterly Report