Andrii Dodonov/iStock via Getty Images Performance factors The fourth quarter ended up providing a more stable environment for the municipal bond market as total return for the Fund matched the Bloomberg Municipal Bond Index. The lack of economic data due to the government shutdown likely subdued movements in the yield curve, while information pertaining to inflation and job creation was delayed. ...
Andrii Dodonov/iStock via Getty Images Performance factors The fourth quarter ended up providing a more stable environment for the municipal bond market as total return for the Fund matched the Bloomberg Municipal Bond Index. The lack of economic data due to the government shutdown likely subdued movements in the yield curve, while information pertaining to inflation and job creation was delayed. In the fourth quarter of 2025, the municipal yield curve saw the long end rally while the front end backed up. However, this more subtle flattening of the curve could not make up for the significant curve steepening that characterized the first half of 2025. Positioning on the yield curve was the determining factor for performance in the municipal bond market throughout 2025. The belly of the curve was the winner, while the long end of the curve struggled to keep up. The Fund lagged in 2025 due to its higher allocation of bonds at the long end of the yield curve. Sector returns for the fourth quarter were largely uniform. There was modest underperformance from pre-refunded, industrial development, and pollution control bonds. These sectors do not comprise large holdings in the portfolio. The Fund's position in Buckeye Tobacco Settlement bonds performed poorly in the quarter and for the year. The bonds are part of a very large, highly liquid, issuance in the high yield market and can exhibit price volatility. During the year, the Fund trimmed its holdings in the hospital and toll road sectors, while at the same time increasing holdings of the electric, gas prepayment and airport bonds. Larger issuance in those three sectors during 2025 offered a chance to diversify sector exposure. Bonds with 4% coupons are still lagging in performance, having had a rough year with their longer duration. A positive attribute of these bonds is their current convexity, with plenty of room to rally before they price to a call. We actively continue to evaluate coupon structures and seek to find ...
frankpeters Fitch Ratings has downgraded Paramount Skydance’s ( PSKY ) corporate and long-term borrower ratings to junk after the company agreed to acquire larger rival Warner Bros. Discovery ( WBD ). The deal is expected to leave the combined entity with roughly $79B in net debt. Fitch downgraded Paramount Skydance and Paramount Global’s ( PSKY ) Long-Term Issuer Default Ratings (IDR) to BB+ from...
frankpeters Fitch Ratings has downgraded Paramount Skydance’s ( PSKY ) corporate and long-term borrower ratings to junk after the company agreed to acquire larger rival Warner Bros. Discovery ( WBD ). The deal is expected to leave the combined entity with roughly $79B in net debt. Fitch downgraded Paramount Skydance and Paramount Global’s ( PSKY ) Long-Term Issuer Default Ratings (IDR) to BB+ from BBB-, pushing the company from the lowest rung of investment grade into junk status. The agency also cut the Short-Term IDR to B from F3. In addition, Fitch lowered PSKY’s senior unsecured debt rating to BB+ from BBB-, assigning a Recovery Rating of RR4. The agency has placed all the ratings on negative watch to reflect uncertainty related to the proposed acquisition of Warner Bros, with potential credit risks including the prospective debt-funded structure, Fitch's expectation of materially elevated leverage, and limited visibility on post-transaction financial policy and capital structure. “The downgrade reflects competitive pressures across the media sector and continued FCF headwinds from significant transformation costs. Fitch believes PSKY's leverage and FCF may remain outside negative rating sensitivities longer than we anticipated,” the agency said . Paramount ( PSKY ) agreed to buy Warner Bros. ( WBD ) last week in a $31 a share takeover. With a total value of $110B, it’s one of the biggest mergers and media deals of all time. Fitch expects to resolve the RWN once final transaction terms, financing mix, and post-close deleveraging priorities become clearer. More on Paramount Skydance Corporation, Warner Bros. Discovery Paramount Skydance: Be Careful What You Wish For, Mr. Ellison Warner Bros. Discovery, Inc. (WBD) M&A Call Transcript The Long Netflix, Short Paramount Trade: Sounds Great, Trades Terribly Paramount CEO says WBD merger will help keep linear TV assets afloat Paramount CEO reaffirms 30 films/year after Warner merger
When undefeated France visit Murrayfield on Saturday in the penultimate round of the Six Nations, every facet of Scotland's game will be tested. The rampant defending champions are the only side still chasing a Grand Slam after swatting aside Ireland, Wales, and Italy so far, and Scotland and England are the sides left who can stop them. A win for Gregor Townsend's side would not only halt that bu...
When undefeated France visit Murrayfield on Saturday in the penultimate round of the Six Nations, every facet of Scotland's game will be tested. The rampant defending champions are the only side still chasing a Grand Slam after swatting aside Ireland, Wales, and Italy so far, and Scotland and England are the sides left who can stop them. A win for Gregor Townsend's side would not only halt that but would put themselves in a position to win a first ever Six Nations title on the final weekend when they go to Dublin. So what are the key areas Scotland simply have to get right at Murrayfield?