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MBIA Inc. and The Bond Buyer recently released the results of their 2004 Municipal Market Outlook Survey, indicating widespread optimism about the performance of public finance markets this year. More than 300 professionals--including investment bankers, government officials, bond counsel, institutional investors, and financial advisors--participated in the survey.
The results show that 93 percent of the respondents expect market volume for long-term municipal bond sales to exceed $200 billion this year, compared to 64 percent in 2003 and 41 percent in 2002.
In general, respondents anticipate solid economic growth. Sixty-three percent believe the Dow Jones Industrial Average will be at 10,000 or higher at the end of 2004, and 88 percent believe that it will be at least 9,500.
A large majority of the respondents, 72 percent, expect the Federal Reserve to raise interest rates. Ninety-two percent believe the Fed's next move will occur sometime in 2004, while only 8 percent believe it will occur in 2005 or later.
Respondents are divided about whether the ...
Source: HighBeam Research, Public finance professionals predict good year for municipal...