Asset Preservation Advisors
Asset Preservation Advisors (APA) is a Registered Investment Advisor founded in 1989. APA specializes in managing high quality tax-exempt and taxable municipal bond portfolios for other registered investment advisors, family wealth offices and institutional clients.
APA Commentaries
APA September Market Commentary
The municipal market ended the month of August with the market holding onto many of the themes of the previous three months. At APA, we continue to find value in municipals and we are taking advantage of the recent sell-off to add what we think are quality credits to client portfolios. TRADING MARKETS Redemptions continue to drive the muni market The month of August has traditionally been marked by positive market performance; historically only three Augusts since 1999 have posted losses (and those losses were less than 0.5%). This August seemed poised for a positive performance with very large cash
APA Special Market Report – September 2013
The De Minimis rule and Municipal Bonds De minimis is Latin for “about minimal things” and under the U.S. Tax Code refers to the taxation of market discount bonds (original discount bonds (OID) are exempt from the de minimis rule). In the fixed income markets a market discount occurs when interest rates rise after the issuance of a bond. This is due to the inverse relationship between interest rates and dollar price. As interest rates rise, market dollar prices of bonds fall or, vice versa, as rates fall the dollar price of bonds rise. For example, consider a 10 year