Municipal Bond News & Insight

• Fitch Upbeat On Tobacco Bonds

Fitch Ratings is expected to upgrade tobacco bonds, citing a more favorable environment for the tobacco industry and improved balance sheets.

• Moody's Says Bond Insurers Can Withstand Subprime Risks

Bond insurers can easily handle the fallout from exposure in subprime Residential Mortgage Backed Securities (RMBS), a new report by Moodys said. In an earlier report, Standard & Poors echoed Moodys confidence.

• Individuals Add to Their Muni Holdings

Individual investors liked what they saw in the municipal bond market in the second quarter, increasing their holdings of individual bonds to almost $918 billion, representing nearly half the $2.54 trillion of total municipal debt.

• Strength of Prepaid Gas Bonds Fuels Investor Demand

Tax-free bonds that help municipalities control their long-term natural gas costs are gaining popularity among investors for their strong protections and high credit ratings

• High-Stakes Hearings Begin on AMT Reform

The House Ways and Means Committee began hearings on reforming the Alternative Minimum Tax (AMT). If nothing is done, about 23 million more taxpayers will be subjected to the AMT this year.