Investors Are Worried About Muni Bonds. How to Profit From Others’ Fear.
“The municipal-bond market has lagged far behind the recovery in other sectors of the credit markets. Does that present a warning—or an opportunity—for investors?
With top-grade munis offering higher after-tax yields than corporate junk bonds, the answer would appear to be the latter.
State and local government borrowers haven’t gotten the same benefit as corporations from the Federal Reserve, as my colleague Alexandra Scaggs explains . Investment-grade and high-yield corporate bonds have rallied strongly in response to the Fed’s backup, while munis have provided relatively paltry returns.” Read more…
Also from Barron’s – Federal Aid for Cities won’t be Cheap
“The Senate appears more reluctant to write a blank check to states and local governments and is likely to demand the inclusion of provisions to shield businesses and health care providers from coronavirus claims,” McLoughlin and his team wrote. “Enactment of the next round of legislation is likely to be more challenging than the first four.”
The National Venture Capital Association has created a webpage with information and resources for venture backed companies about COVID and the federal response to it. This page includes useful information for any business, whether part of the VC community or not.
Tampa Bay colleges see entrepreneurship interest spike during COVID-19 crisis
TAMPA, Fla. — As Florida’s economy begins to rebound, local education leaders are tracking new opportunities for people looking to launch a new product or service. Several Tampa Bay area colleges are pushing to help people start their own business and become entrepreneurs during the COVID-19 pandemic.
Jim Bardwell, like many people in Tampa Bay, was laid off during the COVID-19 crisis, but he quickly found a solution to help our community and get back to work.
“I kept reading stories about farmers dumping food and people going hungry, and I was just sitting in quarantine putting together how it could work,” he explained.
Bardwell is now purchasing extra produce from local farms and selling it online at buyfarmfood.com, while also allowing all of us to buy food and donate it to families in need.
His story is becoming more common as entrepreneurs think of new ways to develop products or services during the coronavirus pandemic.
From Bloomberg, a continuation of the coverage of California and the San Fransisco area’s apparent cluelessness regarding how the economy and labor markets work, and their continued efforts to drive business and high skill workers out of their area.
From the article: “Sachin Dhar thought he and his fiancée had a great deal paying $2,650 per month for a one-bedroom rental in South San Francisco, a short commute from Facebook Inc.’s offices in Menlo Park, where she works. But when the social networking company announced that most employees would be working from home until the end of the year, their calculation changed. “It makes no sense paying Bay Area rent if we can earn our salary living elsewhere,” says Dhar, 25, who already works remotely for a New York advertising startup. They’re considering moving to Hawaii—or, to really save money, somewhere in the rural U.S.”
As workers seek out quality of life, working remotely means that they can live in places that offer great quality of life and quality of space, instead of spending you life in bunker in a sea of parking with no authenticity or character.
This is great for downtowns
This is great for Florida
This is great for Tennessee
This is great for Texas
I guess its also great for California… They get rid of those pesky capitalists.
For small businesses, survival may hinge on closing streets
More coverage about Tampa’s leadership in working to bring stability back to their restaurant sector. This is catching on with many other communities. Really sad though to see another city that used to be an economic development leader when it came to disaster and economic recovery at the back of the pack these days.
The Coronavirus pandemis has left hundreds of U.S. manufacturers examining how to bring at least some of their operations and real estate footprints home. Nearly two-thirds of North American manufacturers say they are likely to bring production and sourcing back to the continent, a new survey by industrial data and tech company Thomas shows. The company surveyed over 1,000 of the continent’s manufacturing and industrial suppliers, with the help of business-to-business data gathered on Thomasnet.com.
Survey indicates that the number of manufacturers that are interested in bringing operations home has increased from 10% to 64%.
The SBA’s experimental Small Business Pulse Survey (Business Pulse) measures the changes in business conditions on our nation’s small businesses during the coronavirus (COVID-19) pandemic.
Business Pulse complements existing U.S. Census Bureau data collections by providing high-frequency, detailed information on small business-specific initiatives such as the Paycheck Protection Program. Results from the survey could provide useful information to policymakers as they seek to address some of the challenges faced by small businesses. In addition, the information may aid businesses in making decisions and assist researchers studying the impact and responses to COVID-19. https://portal.census.gov/pulse/data/
Here are some results from the week of April 26 – May 2, 2020. In general, the results indicate that Florida businesses are performing below the national average, and Tennessee businesses are performing better.
Overall Impact: Large negative impact: National 51.4%, Florida 52.5%, Tennessee 43.7% Moderate negative impact: National 38.5%, Florida 38.1%, Tennessee 38.5% Little or no effect: National 7.6%, Florida 7.8%, Tennessee 9.4%
Change in Revenues: Increased: National 5.9%, Florida 5.1%, Tennessee 9.3% No change: National 20.1%, Florida 17.6%, Tennessee 20.1%
Temporary closings in the last weel: Yes: National 41.4%, Florida 37.3%, Tennessee 35.1%
Change in Employees: Increased: National 4.2%, Florida 3.2%, Tennessee 5.9% Decreased: National 27.5%, Florida 26.8%, Tennessee 19.6% No Change: National 68.2%, Florida 70%, Tennessee 74.4%
Change in Employee Hours: Decreased: National 51.2%, Florida 53.6%, Tennessee 43.0%
Shifted to Other Goods or Services Yes: National 6.8%, Florida 8.2%, Tennessee 7.0%
Adopted pickup/delivery/carry out Yes: National 15.2%, Florida 14.5%, Tennessee 20.5%
Cash on Hand: 1-2 months: National 24.8%, Florida 23.3%, Tennessee 29.2%
Missed Loan Payments: Yes: National 11.5%, Florida 9.9%, Tennessee 12.5%
Missed other scheduled payments: Yes: National 23.6%, Florida 23.5%, Tennessee 18.6%
Received Assistance: Paycheck Protection Program: National 38.1%, Florida 29.1%, Tennessee 44.2%
How Long until return to usual level of operations: 2-3 Months: National 24.1%, Florida 23.9%, Tennessee 35.9% 4-6 Months: National 27.7%, Florida 28.2%, Tennessee 24.4% More than 6 Months: National 31.4%, Florida 33.8%, Tennessee 24.5% Business cannot return to usual level: National 6.2%, Florida 4.3%, Tennessee 4.5% Little or no effect on usual operations: National 6.7%, Florida 5.8%, Tennessee 6.1%