PowerShares VRDO Tax-Free Weekly ETF
Puerto Rico’s Structural Problems Are Similar to Greece’s
Puerto Rico shares a story similar to Greece’s (GREK) in terms of its dismal economic performance and exacerbated debt issues.
Puerto Rico’s GDP Is Falling amid Low Expectations for 2017
For years, Puerto Rico has been using tax incentives to attract corporations to do business in its region. Over the last four decades, the agricultural economy has shifted toward the manufacturing and services sectors.
Fiscal policy changes US investors much watch out for
According to the American Society of Civil Engineers, the US has to spend ~$3.6 trillion by 2020 to make needed infrastructure improvements. This should mean more municipal bonds (MUB) will be issued to help finance these projects.
Factory orders race ahead, driving companies like Union Pacific
The US Census Bureau will release the factory orders report for March on Friday, May 2. The Bureau already released an advance report on factory orders and shipments for March last week.
Must-know: Is the primary market in VRDO issuance set to surge?
Callable municipal debt issuance in Q1 2014 declined ~27% in Q1 2014 to $53.9 billion on a year-over-year basis.
Bond investing: Key risks and strategies to boost your portfolio
As with all investments, fixed income investments are subject to risks too. Bond prices increase when interest rates decline and decline when interest rates increase.
Key benefits of municipal bond investments for your portfolio
The chief advantage of investing in municipal bonds (VRD) is that the interest income on most of them is exempt from federal income taxes and often state and local taxes as well.
Why you should consider variable-rate demand obligation bonds
Variable-rate demand obligations (or VRDOs) are long-term, tax-exempt, floating-rate bonds whose interest rates generally reset on a daily, weekly, or monthly basis.
Why investors should consider municipal bonds despite Puerto Rico
The municipal bond (RVNU) market’s debt outstanding on December 31, 2013, stood at ~$3.7 trillion, making up about 9.2% of the total outstanding debt in the U.S.
Must-know market update: Is Puerto Rico losing its salsero vibe?
The charm of the island has been overshadowed with feelings of pessimism regarding the fiscally distressed state of the economy.