The Broader Market

Tom Doe of Municipal Market Advisors (and a friend of this blogger) talks to Fox Business News about the possibility that municipal bonds could lose their tax exempt status. Many deficit hawks have been calling for the repeal of the tax exemption on munis, as it results in foregone tax revenue to the US Treasury. In this segment, Doe rightly asserts that people should be concerned about munis losing their tax exempt status.

And yet another person disagrees with Meredith Whitney’s dire municipal default predictions. This time it is Municipal Market Advisor’s Matt Fabian.

Enjoy!

The state of the state muni bond market.

Ali Lebanthal on why Meredith Whitney’s prediction of widespread muni defaults is way off base.

I know I have beaten this topic to death, but it is still amazing that Whitney continues to make these predictions when she has been proven wrong each and every time. In fact, each day that passes, she seems more incorrect, yet, she remains steadfast in her views.

While mom and pop retail investors are fleeing the municipal bond market, hedge fund investors are swooping in. This suggests that the hedge fund investors - who typically are more sophisticated investors and have better information than retail investors - know that the market is not nearly as risky as some analysts (Meredith Whitney) suggest.

Ok, this will be the last post on the muni market.

This video addresses some of the positive things happening in the municipal bond market and, as the hosts admit, it “busts a lot of the myths” about what is happening in the market right now.