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JAMES COLBY

Portfolio Manager and Senior Municipal Strategist, responsible for Market Vectors municipal bond investments
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MUNICIPAL-ORIENTED ETFs

CEF Municipal Income ETF* XMPT 
High-Yield Municipal Index ETF HYD 
Intermediate Municipal Index ETF ITM 
Long Municipal Index ETF MLN 
Pre-Refunded Municipal Index ETF PRB 
Short Municipal Index ETF SMB 
*XMPT is a “fund of funds” and is subject to the risks of the underlying funds’ investments.
 

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End Of May, Don't Go Away - Thursday, 05/31/2012

I've taken a little liberty with a familiar saying to suggest that for municipals, I am not booking my three-month summer vacation just yet. Month-to-date and year-to-date performance of all muni high-yield bond sectors (with the exception of tobacco) has been positive. The technicals of demand overpowering supply, which I've previously written about, are still in place.

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Authored by James Colby

Yield On The Run - Wednesday, 05/23/2012

Muni High Yield has been a top-performing segment among municipal bonds, with a total return of 7.75% YTD through April 30, 2012, for Barclays Municipal High Yield Index1.  I believe that the dynamic which has propelled performance in the investment grade muni market is also at play for muni high yield: demand is overwhelming supply. 

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Authored by James Colby

A Little Negative News Is Good - Thursday, 05/17/2012

The municipal bond market has experienced a significant rally — slow but steady — for nearly three weeks. Supportive data and technicals have pushed the market higher. Despite spreads which point at municipals as a value purchase, surprise news (i.e., Meredith Whitney's prediction of mass defaults in 2010) can erect barriers to further advances. Recently, the market had to digest commentary discussing:

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Authored by James Colby

Strategy & Commitment - Friday, 05/11/2012

Municipal yield curve steepness was a significant contributor to 2011 municipal bond returns, and it currently remains so. Because recent changes in yields have been fairly consistent across maturities, the intermediate part of the curve (10 to 14 years) — where yield differences of as much as 25 basis points currently exist between each maturity — continues to be a focal point. Thus, investors should consider how best to assess the combined risks associated with credit and maturity.

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Authored by James Colby

The Trend Is Your Friend - Friday, 05/04/2012

In contrast to what, historically, has been normal for the end of April, municipal performance ended the month on a very positive note. The Barclays Capital Municipal Bond Index1 was ahead by 1.15%2 and the Barclays Capital High Yield Municipal Bond Index1 nearly doubled that at 2.23%2...Cash flow from maturities and called bonds, according to street source Siebert Brandford Shank & Co., is estimated to be higher this May by nearly $3 billion over last year. Average monthly reinvestment into municipal bonds in 2011 was $22 billion, but it is already $1 billion higher in 2012.

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Authored by James Colby

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 the information herein represents the opinion of Jim Colby and these opinions may change at any time and from time to time. 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. © 2013 Van Eck Securities Corporation. MUNI NATION is a service mark 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 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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