Thought Leadership

Municipal Bond Market in Transition

July 22, 2008

This year saw more upheavals in the municipal bond market since the Tax Reform Act of 1986.  At this point, halfway through 2008, it is instructive to reflect on what has changed and to consider the implications for investors.  This commentary will expand upon some points that we made in the 2nd quarter commentary dated 7/11/2008.  We will focus on 5 key factors, put them in perspective and show how they will affect the market going forward.

These factors are:
• Downgrades of Bond Insurers
• New Issue Volume and Credit Structure
• Global Ratings
• State and Local Revenues
• Kentucky V. Davis