Munis Exceeded Expectations in January

Daily Stat | February 21, 2013 | Topics: Investing for Income,  Fixed Income 

52%: Growth of municipal bond supply from January 2012-2013

Municipals turned in a strong January, despite a pick-up in issuance as the month wore on. Supply, according to Thomson Reuters, came in at $26.5 billion, which was 52% higher than last January and exceeded market expectations. Demand, in the form of fund flows, was a strong $7.2 billion, based on ICI data. This was 24% greater than last year and seemed to confirm the continued investor appetite for income, as well as tax protection.

Generally positive US economic growth over the past several months is leading to growing tax revenue for states and smaller out-year budget gaps. The market now turns its focus to Washington and the pending March 1 sequestration cuts, and then to the April 15 tax payment date where the new, more onerous tax rate regime should remind investors of the importance of sheltering income via municipal bonds.

Sources: BlackRock, February 2013; Thomson Reuters; ICI

Browse: Daily Stat

Previous Stat

Economic Headwinds

February 20, 2013

Next Stat

Amid Slow Growth, Sentiment on the Rise

February 22, 2013

Related by Topic: Investing for Income,  Fixed Income 

  • What Spring Brings for Munis

    Daily Stat

    $34 Billion: April's monthly municipal issuance

  • The Methadone Market

    Jeff Rosenberg

    Jeffrey Rosenberg discusses the implications of the Bank of Japan's historic announcement, how investors are encouraged to front-run policy changes and why inflation may not appear for some time.

  • Munis "Spring Ahead"

    Peter Hayes & James Schwartz

    March melancholy gave way to April optimism in the municipal market, as tax-season selling abated and supply/demand looked to resume a more favorable balance. Peter Hayes and James Schwartz discuss this and more in their monthly market update.

  • More Taxes = More Money with Munis

    Chart of the Week

    With investors starved for yield, and hit with higher tax rates, municipal bonds offer muni-to-Treasury yield ratios in excess of 100%, a rare circumstance.

  • High Yield: Why You Still Need It

    James Keenan

    After a solid four-year run, many investors are asking whether it’s time to lock in profits in high yield and move on. Jim Keenan, head of Leveraged Finance at BlackRock, explains why high yield stills deserve a central place in investor portfolios.

  • A Core Bond Alternative Built to Adapt

    Rick Rieder & Bob Miller

    BlackRock’s Rick Rieder and Bob Miller discuss why traditional fixed income approaches may not work in this new world of investing, and how an adaptable approach can help investors achieve their goals.

  • What's Next: The Critical Answers Spring Update

    BlackRock

    BlackRock's senior strategists discuss their views on key market and investment topics, answer the critical questions on investors' minds and point to where they see opportunities in the market.

  • What’s Next: Spring Update Investment Actions

    BlackRock

    BlackRock's best recommendations for the current investing environment.

  • State of the States & Local Governments

    BlackRock

    Investors in municipal bonds have kept a close watch on how state and local governments have fared in the Great Recession and era of austerity. This report takes a comprehensive look at the current state of states and locals.

  • Hungry for Yield? Loans May Satisfy

    Leland Hart

    Seeking to enhance yield in your portfolio without appreciably increasing risk? BlackRock's Leland Hart says floating rate bank loans may be the answer.

  • New Year, New (and Old) Reasons to Like Munis

    Peter Hayes

    Munis have long been a source of high-quality, low-volatility income. That's true to this day, but BlackRock's Peter Hayes explains why 2013 will not be exactly like 2012...or 2011.

  • State of California Update

    Peter Hayes & Jack Erbeck

    After capturing its fair share of news flow in 2012, California enters the second quarter of its fiscal year headline-free and with a notable budget win after voters approved a meaningful tax measure on Election Day.

  • Now for the Hard Part: Investing After the US Elections

    BlackRock

    The votes have been cast; now the hard work begins. In a new report, BlackRock discusses the key challenges and other market implications of the US elections.

  • 2012 Elections: Implications, Insights and Investments

    Peter Hayes & Jeff Rosenberg

    In our pre-election analysis, BlackRock offers suggestions as to where investors can find value in the current markets.

  • Making a Difference One Bond at a Time

    Peter Hayes & James Schwartz

    The municipal bond market is rich in opportunity. Learn how careful credit research can make all the difference in the success or failure of a municipal bond portfolio today.

  • "TIPS" for Protecting Your Portfolio Today from Inflation Tomorrow

    Brian Weinstein & Martin Hegarty

    Higher rates of inflation may be on the horizon, and investors should be prepared. BlackRock's senior inflation-linked fixed income experts discuss the value that Treasury Inflation Protected Securities (TIPS) can provide to a portfolio.

  • Leaving College with Full Hearts…and Empty Pockets

    Daily Stat

    $30,000: The average student-loan debt for a borrower receiving a bachelor's degree in 2013

  • Get More For Less (Risk)

    Chart of the Week

    Adding alternative investments to a portfolio has historically increased its performance while decreasing its volatility.

  • New World Wisdom: Winning More by Losing Less

    BlackRock

    When it comes to investing, the fastest sprint doesn't necessarily make you a winner. Portfolio managers of the BlackRock Equity Dividend Fund discuss why they believe slow and steady wins the investing race - particularly during volatile times.

  • Rethink the Cost of Cash

    BlackRock

    Putting a significant portion of your portfolio into cash may seem like a good idea when times are uncertain and volatile. But there is a cost: Holding cash is a sure way to lose buying power in the long run.

  • The New Diversification: Open Your Eyes to Alternatives

    Christopher Geczy

    Learn about a new approach to portfolio construction and how "alternative" investments can play a larger role for individual investors.

  • The Factors that Drive Success

    Dennis Stattman

    One highly diversified, rigorously tested fund has brought its investors strong results for more than two decades. Find out what three factors make the BlackRock Global Allocation Fund unique.

  • Cast A Wider Net For Income

    Michael Fredericks

    Investors are starved for income with interest rates at historic lows. BlackRock's Michael Fredericks offers ideas about sourcing additional income and smoothing volatility.

  • Fiscal Cliff Deal: What It Means for Investors

    Russ Koesterich

    A fiscal cliff deal has been reached, but what does it mean for investors? Russ Koesterich, Chief Investment Strategist, identifies opportunities in 2013.

  • The Benefits of a Long/Short Strategy in Emerging Markets

    Rodolfo Martell

    Opportunities in emerging markets are plentiful but knowing how to best capitalize on them is important. Learn how a long/short strategy can help you mitigate volatility and benefit from inefficiencies in these markets.

  • Why Dividends? Why Global? Why Now?

    Richard Turnill & Stuart Reeve

    The portfolio managers of the BlackRock Global Dividend Income Fund make a compelling case for investment in high-quality, global, dividend-paying stocks.

  • Can the Rally Continue?

    Russ Koesterich

    Can the Rally Continue? In the latest Investment Directions, Russ Koesterich provides his take and explains his recent downgrade of France and upgrade of South Korea.

  • High-Yield Bonds in a World of Low Rates

    Peter Hayes

    Over the past few years, high-yield bonds have been one of the best performing asset classes. But now that spreads have compressed and prices have gone way up, what should investors do? Peter Hayes, Head of the Municipal Bonds Group, shares his views.

  • States Saving for a Rainy Day

    Chart of the Week

    Balances in state rainy day funds have increased 50% since reaching a low in fiscal year 2010.

  • Will Municipals’ Tax-Exempt Status Change?

    Peter Hayes

    A cap on municipals’ tax exemption remains in the budget proposal, but will this change actually go through? Peter Hayes, Head of the Municipal Bonds Group, weighs in with his views.

  • Blessed with Long Life. Hit by Low Yields. Time to Make a Change.

    Living longer is a blessing, but it’s an expensive one. More years in retirement means your money needs to last longer and stretch. The old ways of investing won’t get you to where you need to be. It’s time for a new strategy.

  • Positioning Your Portfolio for a Fed Exit

    Jeff Rosenberg

    When will the Fed begin to pull back on its quantitative easing program? Jeff Rosenberg, reveals his thoughts on a timeline and discusses how investors should position their portfolios for a potential Fed exit.

  • The Sequester's Impact on the State and Local Level

    Peter Hayes

    Many investors are wondering how the federal sequester will impact the state and local level. Peter Hayes, Head of the Municipal Bonds Group, discusses this and more.

  • Traditional Fixed Income No Longer Compensates for Risks

    Jeff Rosenberg

    Traditional fixed income investments no longer compensate investors for the risks that they are taking. Jeff Rosenberg, Chief Investment Strategist for Fixed Income, shares his recommendations for how investors can generate income with their fixed income portfolios.

  • Harness the Power of Tax Exemption with Munis

    Peter Hayes

    In light of recent tax hikes, many investors are wondering how they can keep more of what they earn. Peter Hayes, Head of the Municipal Bonds Group, explains how you can harness the power of tax exemption with municipals.

  • Where Will Interest Rates Go in 2013?

    Jeff Rosenberg

    January's backup in the 10-year treasury yield has many investors wondering if interest rates will rise further. Jeff Rosenberg, Chief Investment Strategist for Fixed Income, shares his interest rate outlook and recommendations for how investors should position their fixed income portfolios this year.

  • Keep More of What You Earn with Munis

    Peter Hayes

    Municipals have had quite a run but they still remain an attractive investment in 2013. Peter Hayes, Head of the Municipal Bonds Group, explains how you can keep more of what you earn with municipals.

  • Positioning Your Fixed Income Portfolio in 2013

    Jeff Rosenberg

    Now that the new year has begun, how should you position your fixed income portfolio? Jeff Rosenberg, Chief Investment Strategist for Fixed Income, discusses opportunities in the fixed income market in 2013.

  • Fixed Income Outlook for 2013

    Jeff Rosenberg

    Jeffrey Rosenberg, BlackRock's Chief Investment Strategist for Fixed Income, discusses his themes for 2013, including the outlook for interest rates and fixed income sectors, as well as perspectives on China and Japan.

  • US Fiscal Cliff Deal: A Stopgap, Not a Solution

    Russ Koesterich

    With Washington finally coming to a limited agreement to prevent (or delay) the fiscal cliff, BlackRock offers our thoughts about the economic and investment implications.

  • Fiscal Cliff: Good News for Fixed Income Markets?

    Jeff Rosenberg

    Jeff Rosenberg, Chief Investment Strategist for Fixed Income, reveals why going over the fiscal cliff may be good news for some areas of the fixed income market.

  • Worried about Muni Credit? Understand the Fiscal Cliff Impact

    Peter Hayes

    Peter Hayes, Head of the Municipal Bonds Group, discusses the fiscal cliff and the potential impact on municipal credit.

  • The Impact of Tax Policy Changes on Municipals

    Peter Hayes

    Peter Hayes, Head of the Municipal Bonds Group, discusses the potential impact that pending tax policy changes may have on the municipal bond market.

  • Taking Stock: Market Views From the Go-Anywhere Team

    BlackRock

    The go-anywhere BlackRock Global Allocation team offers insight into today's markets and discusses how they're navigating an uncertain world.

  • Beyond the Ordinary: Credit Opportunities for Yield and Return

    Rick Rieder

    Rick Rieder, Co-Chair of BlackRock's Special Credit Opportunities Investment Committee, discusses the unprecedented credit-related opportunities being created in the post-crisis fixed income world.

  • The Appeal of Dedicated Tax Bonds

    BlackRock

    Amid fears - warranted or not - of municipal bankrupties, dedicated-tax bonds are one form of muni debt that offers a certain amount of solace for investors. Members of the BlackRock Municipal Bond Management Committee explain why.

  • Local Government Bankruptcies: Cause for Alarm?

    James Schwartz & Peter Hayes

    The fiscal plight of local governments has been well publicized, with recent bankruptcy filings sparking concern about risk in the municipal space. The news flow comes as little surprise to members of the BlackRock Municipals Group.