JOURNAL ARTICLE

Riskiest Tobacco Bonds Slide as a Drop in Smoking Hits Payments.

  • Published In: Bloomberg.com, 2024. P. N.PAG 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Kaske, Michelle 3 of 3

Abstract

Tobacco bonds in the high-yield municipal debt market have experienced a decline in value due to a decrease in smoking rates. The payments that support these securities have reached a record low, with US states receiving the smallest amount since the legal settlement payments began in 1999. Despite the drop in value, the scarcity of these bonds and investors' search for yield may contribute to a potential recovery. The Biden administration's decision to delay a potential ban on menthol cigarettes could also provide additional support. However, analysts suggest that there may be further weakening in the near term. [Extracted from the article]

Additional Information

  • Source:Bloomberg.com. 2024/05, pN.PAG
  • Document Type:Article
  • Subject Area:Law
  • Publication Date:2024
  • Accession Number:177116834
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