John's Podcast: Recent Episodes
John
My guest, Matt Gastall, Executive Director of Wealth Management at Morgan Stanley explains the crosscurrents in the municipal market and where to find value. He opines that we have endured the pandemic and the market and the credits have emerged in better condition than one would have thought at the inception.
In this installment, Tom Kozlik and I have a broad discussion about what is driving the municipal market presently. We concur that credit is the critical factor versus market factors. Tom makes observations on probable outcomes and where investors need to focus.
Much rhetoric today would lead one to believe that the march to oblivion in municipals is preordained. Although the credits are stressed, we will see a way out of the dilemma. That does not mean there will not be credit adjustments in the days ahead. There will be some increase in defaults and bankruptcies, but we do not see the rates swelling because governments will still work hard to solve their challenges. Debt remains a priority for most and not servicing the debt will not be taken lightly. This discussion is with Tom Hession of Riverbend Capital Advisors about the topics of the day.
Although municipal bankruptcy filings are rare, one may anticipate an increase given the status of local municipal finance since the onset of the pandemic. Laura Appleby who is a partner at the firm of Faegre Drinker Biddle & Reath has a focus on bankruptcy and especially municipal bankruptcy. She compares and contrast the filings under Chapters 9, 11 and 7. She also walks us through highlights in the process. Her outreach is targeted to avoiding pitfalls and to impart a greater understanding of the time, effort, and cost of pursuing a filing.
There are many forces pulling the municipal market in different directions at the moment. The popularity of taxable municipals is just one example. Low rates persist. The election is on the horizon and will affect municipals directly.
Peter Delahunt of Raymond James parses the crosscurrents with me in this edition of the Municipal Beat.
This session is a high level overview of current municipal market conditions and the effect of the coronavirus on all sectors and factors with Tom Hession of Riverbend Capital Advisors and John Hallacy of John Hallacy Consulting LLC.
Taking financial reporting and analytical tools to the next level requires improving Data Standards. This goal has been accomplished in other markets but not in municipals. Liz Sweeney of Nutshell Associates informs us of the steps and why such improvements will provide benefits to issuers and users of improved financial data.
In this session, we visit a few key programs of school support that provide an additional layer of protection for bondholders.
A brief discussion of school support programs in select states with Tom Hession of Riverbend Capital Advisors and John Hallacy of John Hallacy Consulting LLC. These programs are well entrenched and have withstood the test of time in many different business and credit cycles.