Perspectives Blog

August 2013 Archive

High-cost colleges beware

Beth Ware, Senior Municipal Bond Analyst | August 20, 2013

High-cost colleges beware: newly cost-sensitive students may pressure your business model. Municipal bond investors should be aware that certain categories of universities are likely at greater risk of credit rating downgrades. We remain concerned with universities that do not have a strong balance sheet, revenue flexibility and/or reputation to compete long-term in an industry where

Opportunity in lower-quality municipals

Columbia Management, Investment Team | August 15, 2013

Recently enacted higher tax rates — and the threat of even higher rates — enhance the attractiveness of tax-exempt income, especially versus other income-producing securities. Lower quality, shorter maturity investment-grade municipal bonds may provide similar yields as longer maturity bonds, but with lower interest-rate risk and volatility. Independent and well-resourced credit research is a critical