-- UBS Financial Services Inc. is urging investors to buy the debt of states, whose credit quality is among the highest in the $4 trillion municipal bond market and whose bonds are offering sky-high after-tax yields.Strong revenue growth, record-high cash reserves and billions in pandemic stimulus strengthened the credit quality of US states, just as a muni market selloff has driven yields to their highest levels since the financial crisis more than a decade ago.
“Given the higher yield environment, we believe that high quality state GO bonds now present an attractive risk-return tradeoff for long-term investors,” McNamara wrote. State level credits even outside of the general obligation sector are providing extra yield. Take 30-year bonds sold this month by the New York Power Authority. They’re trading at about 5.2%. On a tax-equivalent basis that would earn about 10.7% for investors in the top bracket, according to an online tool from Eaton Vance Management.Year-to-date, state general-obligation debt has lost 1.8%, according to data compiled by Bloomberg, outperforming the 3.45% losses from local credits and the 2.
This young couple rushed to buy a $730K home — and now they can't sleep at night. Here's a 5-point checklist to find out if you're actually ready to buy a houseTORONTO — Five things to watch for in the Canadian business world in the coming week: Air Canada results Air Canada will report its third-quarter results and hold a conference call with investors before financial markets open on Monday.