Muni Fortnightly - October 9, 2017

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Includes: AFB, BAF, BBF, BBK, BFK, BIL, BKN, BLE, BSD, BYM, CXH, DFVL, DFVS, DLBL, DLBS, DMB, DMF, DSM, DTF, DTUL, DTUS, DTYL, DTYS, EDV, EGF, EIM, EIV, EOT, EVN, EXD, FIBR, FLMB, FMB, FMN, FTT, GBIL, GOVT, GSY, HYDD, IEF, IEI, IIM, IQI, ITE, KSM, KTF, LEO, MEN, MFL, MFM, MFT, MHD, MMU, MNP, MQT, MQY, MUA, MUB, MUE, MUH, MUS, MVF, MVT, MYD, MYF, MYI, MZF, NAD, NEA, NEV, NIM, NMI, NUV, NUW, NVG, NXP, NXQ, NXR, NZF, OIA, PLW, PMF, PML, PMM, PMO, PMX, PRB, PST, PVI, PZA, RISE, RVNU, SCHO, SCHR, SHV, SHY, SPTL, SPTS, TAPR, TBF, TBT, TBX, TBZ, TFI, TLH, TLT, TMF, TMV, TTT, TUZ, TYBS, TYD, TYNS, TYO, UBT, UST, VFL, VGIT, VGLT, VGM, VGSH, VKI, VKQ, VMO, VTEB, VUSTX, XMPT, ZROZ
by: Robert W. Baird & Co.

Summary

Treasury yields moved slightly higher in a mostly directionless week after a week of more conviction. Important economic data were and will likely continue to be heavily caveated by hurricane-related effects.

Hurricane Harvey’s impact on Texas credits is broadly manageable.

Virgin Island’s credit rating withdrawn by S&P and Fitch on lack of on-going disclosure.

Moody’s comments that the impact of deferred state and local infrastructure capital expenditure is likely to be higher costs in the future.

Puerto Rico bond prices thrown for a loop on seemingly haphazard comments. S&P Puerto Rico Total Return Index was -8.3% two weeks; -15.2% YTD.