Doe & Fabian of MMA Says December Muni Market Performance "Ended on a Whimper"

    MINNEAPOLIS, MN, February 08, 2010 /24-7PressRelease/ -- MMA MuniCast, a jointly-sponsored podcast from Municipal Market Advisors (MMA) and DerivActiv, has recently posted a podcast interview with Tom Doe, Founder and CEO and Matt Fabian, Managing Director of MMA on "December Muni Market Performance." This podcast is an excellent summary of what happened in the previous month.

One of the major new areas in municipals bonds in 2009 was Build America Bonds (BABs). According to Fabian, "I think that BABs will become a much bigger part of our market in 2010. $64 billion of BABs were sold in 2009. Our current estimate for 2010 is anywhere from $100 to $150 billion of BABs and part of that will hinge on the reauthorization extension and expansion of the BAB program."

Very popular with municipalities to pay for their commitments and ongoing operating funds, BABs are increasingly being used to close shortfalls but bonds are starting to default and that should be a concern on the horizon. "Credit is continuing to get worse for pretty much every credit in the municipal sector. You're looking at the things that are actually defaulting in the municipal bond market and there's just about $5 billion of bonds that have filed some sort of payment default message since July 1, 2009," explained Fabian.

Talking about emerging investors interested in the municipal bond market in 2010, Doe speculated that "we are also seeing some indications that property and casualty companies are apt to return to the municipal market and even though they're showing a little bit of concern involving some of the credit headlines and specifically some concerns around what's going on in pensions, still they're profitable entities and that usually makes them a pretty good participant in the market."

Both Doe and Fabian predict that Build America Bonds will increase and there will be a lot more borrowing in the coming year.

For more information about MMA MuniCast or its sister podcasts CapitalMarket Pulse and MuniMarket Pulse, please visit http://podcast.derivactiv.com/. A complete audio interview and transcript can also be found at: http://podcast.derivactiv.com/

About Municipal Market Advisors
Founded in 1995, Municipal Market Advisors (MMA) is the leading independent strategy, research and advisory firm in the municipal bond industry. As conditions have become more complex and difficult, MMA's recognized ability to concisely comment on the key issues of the market is of critical importance and value. The firm's independent research, data, market coverage and insight educate and inform without bias or product agenda. For more information call 1-978-287-0139, or visit the company's website at: www.mma-research.com.

About DerivActiv, LLC
DerivActiv, LLC is the primary sponsor of MuniMarket Pulse and is a leading provider of web-based derivative valuation and other financial monitoring services, serving financial institutions, corporations, non-profits, and municipalities. DerivActiv provides daily valuations of financial products, including equity, currency and fixed income securities derivatives as well as a number of alternative investments. DerivActiv is used for FAS 133 and 161, Topic 820 (FAS 157) and GASB 53 compliance in financial statements, board and finance committee reports, and as an internal risk management tool. For more information call 1-866-200-9012, or visit the company's website at: www.DerivActiv.com.

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