You know the investing climate is unusual when a stock’s dividend yields more than bonds issued by the same company.
Defying decades of investment history, ordinary Americans spooked by the Great Recession have been selling more stocks than they’ve been buying. The selling has not let up despite unprecedented measures by the Federal Reserve to persuade people to buy and the come-hither allure of a levitating market.
Municipal bond manager Josh Gonze of Thornburg Investment Management in Santa Fe, N.M., picked the $80 million bond on Carmel's Palladium concert hall as one of the six best in the nation.
The city of Indianapolis went to the bond market last month to sell $97 million in debt for the $155 million North of South hotel and retail project near the Eli Lilly and Co. campus.
Inflation is a sinister sort of tax that confiscates wealth. Bonds will lose value in an inflationary environment as interest rates rise.
Interest rates on municipal bonds have ticked up in the last two months to pre-recession levels as investors have pulled their money from bond funds in droves. That pattern has begun, gradually, to reverse, but the higher rates could add to the cost of issuing debt for pending city projects.
A strong balance sheet, experienced management, and conservative debt and investment policies contributed to the strong rating.
Wall Street bankers for decades sold municipalities like Indianapolis on debt instruments called swaps as a safe way to reduce
borrowing costs and hedge against rising interest rates. In reality, the swaps were complicated bets that relied
on misguided assumptions, and taxpayers paid.
Clarian is planning to spend $1.7 billion in the next five years on capital projects, half of that going to its downtown Indianapolis
Indianapolis has fared better than some airports in terms of declining revenue, with passengers down
about 10 percent for much of the year and revenue off 16 percent at one point.