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Muni Market Set to Welcome Puerto Rico’s Return After Bankruptcy
by David Hammer, Sean McCarthy of PIMCO, 3/9/22

Restructured debt has often outperformed the broader municipal bond market as issuers emerge from bankruptcy with higher debt-servicing capacity.

The Tax Man and Urban Flight: Fact and Fiction of Outmigration Trends
by Sean McCarthy, Tom Schuette of PIMCO, 10/29/20

Conventional wisdom says urban residents will flee cities in droves in response to higher taxes and the COVID-19 pandemic. But will that really come to pass?

Making Sense of the Move in Munis
by David Hammer, Sean McCarthy of PIMCO, 3/26/20

Liquidity could remain challenged, but valuations may be attractive for long-term investors.

What Does the Puerto Rico HTA Ruling Mean for Special Revenue Bonds? Likely Not as Much as Feared
by Sean McCarthy, Tom Scgyette of PIMCO, 2/28/20

Municipal bond investors worried by the 1st U.S. Circuit Court of Appeals’ affirmation of a lower court’s decision regarding the Puerto Rico Highway Transportation Authority should rest a bit easier: The ramifications will likely be limited.

Munis in Focus: 2018 Municipal Market Outlook
by David Hammer, Sean McCarthy, Aditi Gupta of PIMCO, 2/2/18

We expect policy will continue to drive municipal bond markets in 2018, if more constructively than in 2017. Municipal investors may remember 2017 as the year of unrealized policy fear. While the threat of tax reform and its potential to reduce the value of the muni exemption for retail investors ­loomed large, ultimately it had little impact on individual municipal bonds.

A Troubled U.S. State Budget Process Puts Muni Investors on Alert
by Sean McCarthy of PIMCO, 8/11/17

Outcomes from the most recent state budget season, which concluded for most U.S. states on 30 June, underscore the need for caution among municipal bond investors.

Munis in Focus: Credit Risk or Opportunity? Analyzing Munis Today
by Sean McCarthy, Rachel Betton, David McMahon of PIMCO, 8/4/17

The muni backdrop looks benign, but be mindful of potential credit risks.

Avoiding Passive Pitfalls in Municipal Strategies
by David Hammer, Sean McCarthy, Samuel Weitzman of PIMCO, 7/10/17

An active approach to the complex, fragmented municipal bond market may help investors avoid several common drawbacks of passive strategies.

Puerto Rico's Title III Bankruptcy: Initial Views and Expectations
by Sean McCarthy of PIMCO, 5/16/17

In many ways the filings may mark “the end of the beginning” (as Churchill once said) of this chapter for Puerto Rico.

High Yield Municipals Find a Sweet Spot
by David Hammer, Sean McCarthy of PIMCO, 8/10/16
PIMCO believes the macro environment remains supportive of the municipal asset class. We see a U.S. economy that continues to expand, which is generally good for municipal credit fundamentals. Municipal defaults generally remain low. Historically, high yield municipal default rates have been significantly lower than high yield taxable counterparts. Moving forward, credit selection remains key. We continue to see value in MSA (Master Settlement Agreement) tobacco bonds; we believe risks to most Puerto Rico governmental bonds remain skewed to the downside, but we continue to assess the opportunities in the Territory.

2016 Outlook: A Slow and Gradual Fed is Nothing for Municipal Investors to Fear
by David Hammer, Sean McCarthy of PIMCO, 2/16/16
The combination of continued U.S. growth, muted global inflationary pressures and gradual Fed tightening bodes well.

Municipal Market Update: What's Ahead in 2015
by Joseph Deane, Julie Callahan, Sean McCarthy of PIMCO, 1/29/15
Municipal bonds ended 2014 as one of the best-performing asset classes - buoyed by investors’ search for yield in a low interest-rate environment. For 2015, we are positioned cautiously for greater volatility in the fixed income markets. We currently prefer revenue-backed bonds over most general obligation (GO) debt, as these sectors typically benefit from dedicated revenue streams and do not have the pension challenges that many state and local governments face.

Positioning for Municipal Market Volatility
by Joseph Deane, David Hammer, Sean McCarthy of PIMCO, 10/23/13
We do not anticipate a significant increase in the frequency of municipal defaults, but there are pockets of credit stress in U.S. municipalities and territories, particularly those with unfunded pension obligations and unsustainable budget imbalances. Large concentrations of exposure to Puerto Rico within subsets of the municipal market will likely lead to an increase in spread volatility across other municipal sectors in the coming quarters.

After Detroit: Rigorous Research and Credit Selection Is the Key to Investing in Municipal Bonds
by David Hammer, Sean McCarthy of PIMCO, 10/4/13
Detroit recently declared bankruptcy, setting off the largest municipal Chapter 9 proceeding in history. There has been and will continue to be a lot of noise in the media, underscoring challenges but also presenting opportunity for experienced investors. PIMCO has long favored special revenue essential service bonds over GO bonds. Detroit Water and Sewer bonds are payable by a pledge of and statutory lien on net revenues of the water or sewer system, and as such benefit from provisions in the federal bankruptcy code ensuring that the pledge is not affected by the petition.
14 results found.