The 35% subsidy from the federal government, i.e. taxpayers, to the states is about to end. $185 billion in these bonds was issued in 2010. With the House changing hands next year it is unlikely the program will be resurrected. Watch for a very rough year for muni bonds in 2011.
- Fed Closes Chapter on Easy MoneyThe Federal Reserve said it would end its long-running bond-purchase program, concluding a historic experiment that stirred disagreement among policy makers, economists and investors about its impact even though the central bank said it helped accomplish its goal of reducing unemployment. […]
- Debt Fuels Growth of Buyout ShopsThe firms that pioneered the use of debt in corporate buyouts some 30 years ago are now selling bonds as they expand into lending, real estate and distressed-debt investing, among other new fields. […]
- Bad Bets Rock Fortress's Macro FundA series of bad bets against U.S. government bonds and the Japanese yen, along with a wrong-way wager on Brazil, have caused losses this year at Fortress Investment’s macro hedge fund. […]
- Fed Closes Chapter on Easy Money