02/26/2014

University of Colorado Requests that S&P Remove Credit Ratings from Debt

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On January 13, 2014, Standard & Poor’s Ratings Services withdrew all its ratings from the University of Colorado and University of Colorado Board of Regents’ debt at the request of the issuers.  The University was last rated AA- by S&P and is currently rated Aa2 by Moody’s and AA+ by Fitch.  Since the S&P ratings were withdrawn at the issuer’s request due to the expense of maintaining the ratings and not for credit related reasons, this change is not a cause for concern.

However, this decision is notable for an entity the size...

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02/25/2014

Oregon Taxpayers Reap Savings from School Bond Program

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In its 2014 Legislative Update, the Oregon State Debt Policy Advisory Commission recently reported an estimate suggesting that the Oregon School Bond Guaranty Program has saved Oregon taxpayers approximately $6.0 million per year, or $120 million over a twenty year period.  This State guaranty applies to local school district and community college debt service payments of $407 million, which is equivalent to approximately 5.9% of total General Fund revenues for the fiscal year, and 12.4% of overall state aid for schools and community colleges.

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02/06/2014

Hawaii – Positive Economic News

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The Hawaii Tourism Authority reported on January 30, 2014 that Hawaii visitor arrivals in 2013 set a new record of 8.24 million visitors for the year.  This represents an increase of 2.6% over 2012. Annual total visitor expenditures also increased 2% to $14.5 billion. Arrivals from the mainland were up slightly over 2012, while arrivals from Japan rose 3.9% and arrivals from Canada grew by 2.1%.  Arrivals from smaller visitor markets (Oceania, Europe, Latin America) continue to show strong growth rates.

After another record-setting year for tourism and continued growth in construction, the state reported an increase in net assets...

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01/24/2014

2014 Colorado Municipal Market Outlook

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The National Perspective

Over the course of 2014, a number of economic and policy variables are likely to impact the municipal bond market.  Consensus expectations of the Federal Reserve indicate a gradual tapering of the Fed’s asset purchase program.  While the initial market response may be negative, over time more attractive valuations may draw buyers to the market.  The long end of the yield curve has flattened while we’ve seen a steepening on the short end.  Estimates of the 2014 year-end yield on the 10-year Treasury fall near 3.50%.  Municipal bonds remain attractive relative to Treasuries.  In this environment, the...

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01/23/2014

2014 Oregon Municipal Market Outlook

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The National Perspective

Over the course of 2014, a number of economic and policy variables are likely to impact the municipal bond market.  Consensus expectations of the Federal Reserve indicate a gradual tapering of the Fed’s asset purchase program.  While the initial market response may be negative, over time more attractive valuations may draw buyers to the market.  The long end of the yield curve has flattened while we’ve seen a steepening on the short end.  Estimates of the 2014 year-end yield on the 10-year Treasury fall near 3.50%.  Municipal bonds remain attractive relative to Treasuries.  In this environment, the...

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01/21/2014

2014 Rhode Island Municipal Market Outlook

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The National Perspective
Over the course of 2014, a number of economic and policy variables are likely to impact the municipal bond market.  Consensus expectations of the Federal Reserve indicate a gradual tapering of the Fed’s asset purchase program.  While the initial market response may be negative, over time more attractive valuations may draw buyers to the market.  The long end of the yield curve has flattened while we’ve seen a steepening on the short end.  Estimates of the 2014 year-end yield on the 10-year Treasury fall near 3.50%.  Municipal bonds remain attractive relative to Treasuries.  In this environment, the...

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01/16/2014

2014 Utah Municipal Market Outlook

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The National Perspective
Over the course of 2014, a number of economic and policy variables are likely to impact the municipal bond market.  Consensus expectations of the Federal Reserve indicate a gradual tapering of the Fed’s asset purchase program.  While the initial market response may be negative, over time more attractive valuations may draw buyers to the market.  The long end of the yield curve has flattened while we’ve seen a steepening on the short end.  Estimates of the 2014 year-end yield on the 10-year Treasury fall near 3.50%.  Municipal bonds remain attractive relative to Treasuries.  In this environment, the...

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01/16/2014

2014 Arizona Municipal Market Outlook

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The National Perspective
Over the course of 2014, a number of economic and policy variables are likely to impact the municipal bond market.  Consensus expectations of the Federal Reserve indicate a gradual tapering of the Fed’s asset purchase program.  While the initial market response may be negative, over time more attractive valuations may draw buyers to the market.  The long end of the yield curve has flattened while we’ve seen a steepening on the short end.  Estimates of the 2014 year-end yield on the 10-year Treasury fall near 3.50%.  Municipal bonds remain attractive relative to Treasuries.  In this environment, the...

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01/16/2014

2014 Hawaii Municipal Market Outlook

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The National Perspective
Over the course of 2014, a number of economic and policy variables are likely to impact the municipal bond market.  Consensus expectations of the Federal Reserve indicate a gradual tapering of the Fed’s asset purchase program.  While the initial market response may be negative, over time more attractive valuations may draw buyers to the market.  The long end of the yield curve has flattened while we’ve seen a steepening on the short end.  Estimates of the 2014 year-end yield on the 10-year Treasury fall near 3.50%.  Municipal bonds remain attractive relative to Treasuries.  In this environment, the...

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01/12/2014

Our Municipal Bond Fund Strategy in 2013

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The bond markets in 2013 were roiled by comments made in April by then Chairman of the Federal Reserve, Ben Bernanke, regarding future tapering of the Fed’s bond buying program.  Market participants responded to those comments, touching off a wave of redemptions and declining prices in the fixed income markets.  The events impacting the bond market in 2013 demonstrated the volatility that may be witnessed from time to time in an asset class often perceived as being relatively conservative.

The investment strategy implemented in managing each of the Aquila Group of Funds single-state municipal bond funds is focused on an...

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