Dexia from the bottom up

October 6, 2011

Industry professionals who lived through a real muniland disaster when the auction-rate security (ARS) market exploded in 2008 have cocked a jaundiced eye at the news that the giant Belgian/French bank Dexia — a big guarantor of American municipal bonds — is on the verge of collapse.

Municipal bonds are not just for rich people

September 16, 2011

This Bloomberg interview with John Miller, co-head of fixed-income at Nuveen Asset Management, is a good overview of the current state of muniland although I disagree with his comment that “many, if not most municipal bond holders are in the highest tax bracket”.

Bank backstops for municipals

May 9, 2011

There is a very interesting class of municipals that you may not know about.

They are called “variable rate demand obligations” (VRDOs).

Moody’s estimates the market size at about $380 billion or 13% of the $3 trillion municipal market.