Transaction costs for retail investors buying municipal bonds in the secondary market have jumped since 2021 as falling bond prices have made the securities riskier for dealers to hold, according to a study released on Tuesday.
The gap between the yield where dealers buy or sell a security, known as the effective spread, has widened to 0.545 percentage point, or 54.5 basis points as of March. That’s up from 52.9 bps in 2022 and 40.1 bps in 2021, according to the report from the Municipal Securities Rulemaking Board, an industry regulatory body.
That’s pushed down the price of bonds, with longer-term debt generally hit the hardest. Municipal bonds that trade at below their face value are often harder for dealers to sell, because any gains on the principal can be taxable, making the debt less attractive to the wealthy investors that often focus on tax-free bonds.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Permian Resources to buy Earthstone Energy in all-stock transaction valued at US$4.5-billionThe deal would strengthen Permian Resources’ position as a leading Delaware Basin independent producer, with pro forma production of about 300,000 barrels of oil equivalent per day
Lire la suite »
Warehouse Costs Rise 10% With London Most Expensive GloballyLondon is the most expensive city in the world for warehouse space as rent increases continue to outpace inflation.
Lire la suite »
Yuan Shorts Squeezed as Funding Costs Jump to a Five-Year HighFunding costs in China’s offshore market rose by the most in six years amid speculation that authorities in Beijing are making it more expensive to bet against the currency.
Lire la suite »
Charles Schwab to reduce headcount to bring down costs(Reuters) - U.S. lender Charles Schwab said on Monday it plans to reduce its operating costs primarily through lowering its headcount and professional ...
Lire la suite »
Whether renting or buying, higher housing costs can make life harder for divorcing couplesDivorce brings many challenges, including finding new accommodations under duress. The high cost of housing is making that part of the process that much harder for couples going their separate ways, according to real estate and family law professionals.
Lire la suite »
Coty forecasts downbeat annual profit as goods, labor costs biteBy Juveria Tabassum and Ananya Mariam Rajesh (Reuters) - CoverGirl parent Coty forecast annual profit below Wall Street expectations on Tuesday, hurt ...
Lire la suite »