Investing in the High Yield Municipal Market – How to Profit from the Current Municipal Credit Crisis and Earn Attractive Tax–Exempt Interest Income

T Nguyen (Autor)

Software / Digital Media

288 Seiten

2012
John Wiley & Sons Inc (Hersteller)
978-1-118-53172-3 (ISBN)

Infos

A practical guide to profiting from the high yield municipal market This unique guide to the high yield municipal bond market sheds some much-needed light on this esoteric but profitable corner of the fixed-income world. It fills the void between the general reference handbooks on municipal bonds and the superficial treatment of do-it-yourself bond guides, with an emphasis on practical trading applications. Having witnessed the beginning of the modern high yield tax-exempt institutional market, author Triet Nguyen documents its historical evolution, outlines a conceptual framework for high yield tax-free investing, one that takes into account both interest rate and credit cycles, and reviews the latest historical data on municipal defaults, including for the first time the non-rated sector. Current distressed opportunities are also discussed. Along the way, Nguyen takes the time to discuss in detail the pros and cons of investing in pre-packaged high yield vehicles-from mutual funds to hedge funds to exchange-traded funds-with frank and objective insider tips on how these slickly marketed products really work.
For the truly committed investor who wants to do his or her own homework, Nguyen and a group of industry experts go over the key investment considerations for several major classes of high yield tax-exempt bonds. Offers unique insights into the risk/return, trading, and liquidity characteristics of high yield municipal instruments Includes interesting case studies to fully illustrate the high yield investing process Written by an insider of both the asset management industry and the broker-dealer community Investing in the High Yield Municipal Market will put you in a better position to profit in this arena and help you excel in today's tough financial environment.

Autor

Triet Nguyen is a thirty-year veteran of the fixed-income markets and a high yield municipal bond expert. He has designed, marketed, and managed every type of buy-side investment product, from mutual funds (open and closed-end) to managed accounts and hedge funds. He was Senior Vice President at B.C. Ziegler in charge of tax-exempt high yield and taxable municipal bond trading (including Build America Bonds) and Managing Director of Saybrook Capital, LLC, managing municipal bond hedge funds. In addition, Mr. Nguyen was President of Axios Advisors, LLC, a Vice President/Portfolio Manager of the John Hancock Funds, and a Senior Portfolio Manager of the Putnam Funds. Triet received a BA in economics and an MBA in finance and accounting from the University of Chicago.

Inhalt

Foreword xi Preface xv Acknowledgments xix CHAPTER 1 The Basics of High Yield Municipal Bonds 1 What Is a High Yield Municipal Bond? 1 Common Yield Measurements 2 Key Risk Factors 5 Notes 13 CHAPTER 2 A Brief History of the High Yield Muni Market 15 The Early Years 15 Historical High Yield Opportunities 20 Credit Setbacks 22 The Advent of Leverage 23 The Credit Crisis of 2008 and Its Aftermath 24 Note 25 CHAPTER 3 The Investment Case for High Yield Municipals 27 High Yield Municipals versus Other Asset Classes 28 The Impact of Bond Evaluations 34 Six Basic Tenets of High Yield Municipal Investing 38 CHAPTER 4 High Yield Credit Risk Revisited: The Default Record 51 Definitions of Default 51 Default Record for Rated Bonds 53 Default Record for Unrated Bonds 55 Recent Default and Impairment Statistics 57 Recovery Rates 60 Lessons from Historical Default Records 61 Notes 64 CHAPTER 5 Professionally Managed High Yield Municipal Products 65 Actively Managed Products 66 Passively Managed Products 82 Notes 86 References 86 CHAPTER 6 Investing in Individual Bonds 87 Richard Daskin, CFA, CFP A Few Preliminary Considerations 87 Investing in the Primary or New Issue Market 88 Investing in the Secondary Market 89 Executing Trades in the Secondary Market 90 Monitoring Your Holdings 91 CHAPTER 7 Investing in Distressed Bonds 93 The Distressed Municipal Universe 95 The Theory and Practice of Distressed Municipal Investing 98 Notes 101 Reference 101 CHAPTER 8 Case Studies 103 Distressed Opportunity: National Benevolent Association 103 Fallen Angel: Denver International Airport 106 Notes 111 CHAPTER 9 Managing Bond Defaults and Bankruptcies 113 Kenji Mochizuki, CIRA Nine Differences between Chapter 9 and Chapter 11 113 Bondholders' Rights and Remedies in Workouts 119 Accounting Issues Related to Chapter 9 128 References 132 CHAPTER 10 Common Types of High Yield Municipal Bonds 135 Patrick Flanagan James Lyman Keith Rochelli Ken Rogozinski Corporate-Backed Municipal Bonds 136 Hospital Revenue Bonds 146 Toll Road Bonds 155 Housing Bonds 161 Continuing Care Retirement Communities (CCRC) Bonds 171 Notes 178 CHAPTER 11 Special Types of High Yield Municipal Bonds 179 Richard Larkin Shannan Wilson Tobacco Settlement Bonds 179 Land-Secured Bonds 190 Notes 199 References 199 CHAPTER 12 Up-and-Coming High Yield Sectors 201 Jon Barasch and Edward Krauss Jeffrey Lamb, Matt Eden, and Melissa Robertson Charter School Bonds 202 Native American Gaming Bonds 207 CHAPTER 13 High Yield Investing in the Post--Bond Insurance Era 215 Learning from History 215 Prospects for Tax Reform 216 The New Compliance Landscape 218 New Credit Opportunities 219 Advances in Trading and Price Discovery Technology 222 Buy American! 223 Appendix: The Dodd-Frank Act and the Municipal Market 225 Kenji Mochizuki, CIRA Regulation of Municipal Securities 226 Changes to the Board of the MSRB 229 Commission Office of Municipal Securities 231 Municipal Securities Studies 232 The Volcker Rule 235 References 237 Selected Resources for Investors 239 About the Author 245 About the Contributors 247 Index 255

Produkt-Details

• Erscheint lt. Verlag: 11.9.2012
• Verlagsort: New York
• Sprache: englisch
• Maße: 202 x 268 mm
• Gewicht: 947 g
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• ISBN-10: 1-118-53172-8 / 1118531728
• ISBN-13: 978-1-118-53172-3 / 9781118531723
• Zustand: Neuware