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    High Level View - Tuesday, 06/10/2014

    Much of the muni commentary these past several days has focused on what, to some, may have been the surprising and meaningful performance of the asset class as measured by the Barclays Municipal Bond Index: 5.91% year-to-date (YTD) as of 6/4/14. I believe the primary driver of performance this year has been the imbalance of newly issued municipal bonds coming to market to meet demand. However, the forward 30-day visible supply may now have reached what I believe to be meaningful levels.

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    Reality Check - Friday, 05/30/2014

    Total new municipal bond issuance in the U.S. was $102 billion year-to-date (YTD) ending May 23, 2014. Tax-exempt municipal bond issuance was $93 billion during the same period. The difference between the two was taxable municipal bond issuance. Consider overlaying this data mentally with the recent performance of the municipal indices.

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    Spotlight On Rhode Island - Friday, 05/16/2014

    Rhode Island. The Ocean State. Little Rhody. It is officially the smallest U.S. state in area but the second most densely populated with a little over one million residents as of a 2012 census estimate. It was also the first of the original 13 colonies to declare independence from British rule. Why this little civics refresher? Rhode Island is at the heart of a serious discussion centered on the "moral obligation" to pay a debt, according to a recent Reuters article.

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Important Disclosure 

Van Eck Associates Corporation does not provide tax, legal or accounting advice. Investors should discuss their individual circumstances with appropriate professionals before making any decisions. This information should not be construed as sales or marketing material or an offer or solicitation for the purchase or sale of any financial instrument, product or service.

Please note that MUNI NATION is written by Jim Colby and represents his opinions, and these opinions may change at any time and from time to time. MUNI NATION is not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue. Non-Van Eck Global proprietary information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of Van Eck Global. © 2014 Van Eck Securities Corporation. MUNI NATION is a trademark of Van Eck Associates Corporation.

All indices listed are unmanaged indices and do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in the Fund. An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made.

Any discussion of specific securities mentioned in the commentary is neither an offer to sell nor a solicitation to buy these securities.

Municipal bonds are subject to risks related to litigation, legislation, political change, conditions in underlying sectors or in local business communities and economies, bankruptcy or other changes in the issuer’s financial condition, and/or the discontinuance of taxes supporting the project or assets or the inability to collect revenues for the project or from the assets. Bonds and bond funds will decrease in value as interest rates rise. Additional risks include credit, interest rate, call, reinvestment, tax, market and lease obligation risk. High-yield municipal bonds are subject to greater risk of loss of income and principal than higher-rated securities, and are likely to be more sensitive to adverse economic changes or individual municipal developments than those of higher-rated securities. Municipal bonds may be less liquid than taxable bonds.

The income generated from some types of municipal bonds may be subject to state and local taxes as well as to federal taxes on capital gains and may also be subject to alternative minimum tax.

Investing involves substantial risk and high volatility, including possible loss of principal. Bonds and bond funds will decrease in value as interest rates rise. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 888.MKT.VCTR | 888.658.8287. Please read the prospectus and summary prospectus carefully before investing.  

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