Market Insights
Our latest insights on bond market activity
How You Can Have Confidence in a Market Storm
US investors are currently grappling with a challenging market environment. The recent fluctuations in both stock and bond markets have led to a decrease in the value of their investment portfolios, causing significant concern.
Bond Market Whiplash: Postponed Deals, Equity Losses & the Rising Flight to Safety – What a difference 4 days make
• We saw another +20-bps day on 4/9 based on evaluations as MUNIs continued the selloff. The rout drove the 10-year AAA benchmark to 3.80%, which is the highest since at least 2011, according to Bloomberg evaluations.
Bond Market Reacts to Tariff Concerns & Fed Expectations—What’s Next for Yields?
The bond market is rallying as central banks are expected to ease monetary policy to mitigate the negative impact of the trade war on economic growth. This does make sense, and we expect this to happen. The market is also telling you this with the sharp decline in...
Read our latest musings about actions and events affecting the investment landscape.
Video: Why Does DRL Not Buy Lower Quality Paper?
Duration: 2:11
Transcript: When you’re working with a team that understands the municipal bond world and that also understands credit ratings, credit quality, claims paying ability, specific insurance companies, what to buy and more probably more importantly, what not to buy.
Video: The Difference Between Revenue-backed and General Obligation Bonds
Duration: 4:48
Transcript: Understand the underlying asset and what’s being, generated payment, what payment is being generated from that underlying asset. So we’ve been we’ve been asked a lot about the difference between revenue bonds and general obligation bonds.
Video: DRL Market Commentary and What Moves Interest Rates
Duration: 2:48
Transcript: With over three decades of doing one thing, we believe we can provide valuable insight on what’s going on in the bond markets. And if you are listening to this and if you’re signed up on our lists, you receive various data points from us. We typically send out something every Thursday.
Investors Seek Stability Amid Policy Uncertainty, FED Holds Steady, MUNI Bonds in Focus
James Pruskowski, CIO at 16rock Asset Management, said fears of stagflation resulting from President Trump's tariff policies and the layoffs of thousands of federal employees are spooking investors. Too much is hitting the investor at once, particularly growth risk...
MUNI Market Insights: Where Do We Go from Here?
One of the questions for the Webinar is: “FED Funds rates are down 100 bps; however, MUNI paper is up ~100 bps since that move - why?” This is a difficult question, as there is no single answer. One would think that with the Fed Funds rates down, borrowing costs...
Fed Rates, Tariffs & MUNI Moves
Today’s 2/20 applications for US unemployment benefits showed little change last week, hovering around pre-COVID levels and indicating solid demand for workers. Initial claims increased by 5000 to 219000 in the week ended 2/15. There is not much change; we all know...
CPI Sparks Inflation Fears and Shifts Rate Cut Expectations – FED Debate Heats Up Amid Market Volatility
CPI is the hot topic on 2/12. The danger is that an elevated inflation reading and the news headlines it produces will add to inflation expectations. As we have mentioned in the past two weeks, inflation has already been ticking up amid all the discussions of tariffs....
Jobs, Yields, and MUNI Issuance: A Look at Key Market Drivers
We saw that Jobless claims picked up today and are still near pre-COVID levels. Applications for US unemployment benefits increased by 11K to 219K, which was reported today, 2/6/2025. Continuing claims rose to 1.89MM in the week ended 1/25/25, and the average of new...
Treasuries Rally as Inflation Slows, MUNIs Yield Higher
Treasuries rallied as inflation slowed and was lower than forecasted. On Wednesday, we saw a surge in US government debt, pushing yields lower by ~10bps across the curve.