M2 EQUITYBITES-August 26, 2015-BlackRock Build America Bond Trust announces name change to BlackRock Taxable Municipal Bond
Consistent with this prediction, we observe that the fraction of insured bonds is substantially higher in the tax-exempt municipal bond market than in the less segmented taxable municipal bond
market, 54% versus 36%, respectively (Table I).
Government Secs A CMPGX Short-Term Ivy Mortgage Securities A IYMAX Bonds Phoenix-Goodwin S/TBdA NARAX Rainier Interm Fixed-Inc RIMFX Brown Advisor Intrm Inc A BIATX William Blair Income N WBRRX Long-Term Delaware Extended Duration Bond A DEEAX Bonds Vanguard Long-Term Bond Index VBLTX Vanguard Long-Term Inv.-Grade Fund VWESX Delaware Corporate Bond A DGCAX Lebenthal Taxable Municipal Bond
LTMBX Muni National Harris Insight Tax-Exempt Bond N HXBAX Interm.
FPNIX ([dagger]) Lebenthal Taxable Municipal Bond
N/A Money ([double dagger]) Vanguard Prime Money Market VMMXX Markets ([double dagger]) Vanguard Federal Money VMFXX Market ([double dagger]) Harbor Money Market HARXX ([double dagger]) Fidelity Cash Reserves FDRXX ([double dagger]) Fidelity U.S.
Some of that interest may get financed in the form of taxable municipal bonds
. That's an area where we're seeing interest in the U.S.
That said, Stokes believes the bright spots for fixed-income in the coming year are going to come from the investor's ability to recognize stable to improving credits, which include corporate bonds, as well as bonds issued by government agencies, foreign governments, and taxable municipal bonds
. "If we're in an environment with low yields to even potentially rising yields, that's not the best environment for fixed- income.
Taxable municipal bonds
, bonds with floating rates, and derivatives are excluded from the index.
The Texas Transportation Commission sold nearly $1.5 billion in Build America Bonds in two tranches Monday, the largest sale of those taxable municipal bonds
in more than a month.
Part of the American Recovery and Reinvestment Act, BABs are taxable municipal bonds
carrying special tax credits and federal subsidies for municipal bond issuers.
Gore said that President Clinton would propose some $700 million over the next five years in new federal spending to leverage up to $10 billion in taxable municipal bonds
, which he dubbed "Better America Bonds." Proceeds of the bonds issued by state, local, or tribal governments, after approval by the federal Environmental Protection Agency (EPA), would be to preserve green space, create or restore urban parks, protect water quality, and clean up brownfields.
According to the NAIC, from 2008 to 2012, life companies more than tripled their muni investments from $38 billion to $125 billion, driven by increased purchases of taxable municipal bonds
. The largest increase in life holdings coincided with the Build America Bonds program, created as part of the American Recovery and Reinvestment Act that President Barack Obama signed into law Feb.