Update on details IN SEC Filings are farther down in this post
> Series 2013 City of Mesa AZ (City of Mesa AZ Excise Tax)
> Series 2016 City of Mesa AZ Utility System Revenue______________________________________Here are a few things to keep in mind in 2019:
1. The muni market will continue to feel the effects of the 2017 tax law changes.
The 2017 Tax Cuts and Jobs Act limited some types of bonds permitted by issuers. It also limited or eliminated a number of expenses eligible for federal tax deductions. Partly as a result, 2018 muni bond issuance is on pace to be the lowest since 20141. Limited supply supported prices this year and helped munis to deliver higher total returns than most other major fixed income sectors. We expect issuance of munis to remain low in 2019, which should provide a tailwind for performance in 2019.
Returns for munis have bested most other fixed income categories
(This is from https://www.schwab.com/resource-center/insights/content/2019-municipal-bond-market-outlook-cautious-approach )
2019 Municipal Bond Market Outlook: A Cautious Approach
Cooper J Howard December 13,2018
To the right an infographic April 29, 2019 >
SCHEDULE OF INVESTMENTS
_______________________________________________________________________
2019 Municipal Bond Market Outlook: A Cautious Approach
Cooper J Howard December 13,2018
Key Points
- Heading into 2019, we see the most favorable risk-to-reward opportunities in higher-rated (AA/Aa and AAA/Aaa) municipal bonds, and in the five- to eight-year part of the yield curve.
- Although credit quality is generally strong, tight credit spreads don’t justify taking on added credit risk, in our view.
- In 2019, we expect total returns to be positive, driven by low supply and limited upside to intermediate- and longer-term Treasury yields.
We believe municipal bond investors should take a cautious approach in 2019, amid rising economic uncertainty, concerns about trade friction and worries about the impact of higher interest rates. We favor the five- to eight-year part of the yield curve and suggest focusing on higher-rated (AA/Aa and AAA/Aaa) issuers for an attractive balance of risk and reward due to tight credit spreads and limited upside to intermediate- and longer-term Treasury yields.
Although there are risks in the broader markets, we expect muni returns to be positive in 2019, due to a combination of limited new supply and strong demand for tax-advantaged income. Credit conditions are strong for most muni issuers, although some regions are struggling. Munis should continue to yield more than comparable corporate and Treasury bonds after taxes for high-income earners, making them a relatively attractive option in 2019.
Although there are risks in the broader markets, we expect muni returns to be positive in 2019, due to a combination of limited new supply and strong demand for tax-advantaged income. Credit conditions are strong for most muni issuers, although some regions are struggling. Munis should continue to yield more than comparable corporate and Treasury bonds after taxes for high-income earners, making them a relatively attractive option in 2019.
To the right an infographic April 29, 2019 >
MuniNet provides commentary and analysis relating to municipal bonds and their fundamental credit issues. From an investor perspective, we provide you with daily AAA yield levels on tax-exempt municipal bonds courtesy of Standard & Poor’s Securities Evaluations, Inc….
DISCLAIMER: All references to municipal bonds or information related thereto is for informational purposes only. It is general in nature and based on matters or authorities that are considered reliable but not guaranteed or verified by MUNINET LLC.
- Tax-Exempt AAA Non-callable S&P Yield Curve Recap (based on representative indices) at the close of day on April 29, 2019, compared to the previous market day.
- Municipal bond yield levels saw very little change as compared to the previous day across almost all non-callable key benchmark maturity indices.
- Only two maturity indices saw change. The three-year maturity index gained one basis point in yield. The 20-year maturity index lost one basis point in yield.
- The rest of the indices from the chart above saw no change.
- Non-callable municipal bonds normally carry lower yields on maturity bonds than non-callable ones reflecting the likelihood that investors anticipate principal repayment on the called bonds prior to the stated maturity. (Optional redemptions usually apply to municipal bonds with maturities of ten years or more).
Daily Municipal Bonds Yields April 29, 2019
_________________________________________________________________________
RESOURCE:
Municipal Bonds | Investor.gov
https://www.investor.gov/introduction-investing/basics/investment.../municipal-bonds
_________________________________________________________________________
SCHEDULE OF INVESTMENTS
AB Municipal Income Fund II
AB Arizona Portfolio
Portfolio of Investments
February 28, 2019 (unaudited)
MUNICIPAL OBLIGATIONS - 98.5%
Long-Term Municipal Bonds - 98.5%
Arizona - 80.8%
Date of fiscal year end: May 31, 2019
Date of reporting period: February 28, 2019
Source: https://www.streetinsider.com
City of Mesa AZ (City of Mesa AZ Excise Tax)
| ||||||||
Series 2013
| ||||||||
5.00%, 7/01/32
| 5,000 | 5,465,000 | * | |||||
City of Mesa AZ Utility System Revenue
| ||||||||
Series 2016
| ||||||||
4.00%, 7/01/32
| 1,000 | 1,081,070 | * |
* U.S. Dollar Value
______________________________________________________________________________________________
Form N-Q AB MUNICIPAL INCOME FUND For: Feb 28
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-07618
AB MUNICIPAL INCOME FUND II
1345 Avenue of the Americas, New York, New York 10105
Joseph J. Mantineo
AllianceBernstein L.P.
1345 Avenue of the Americas
New York, New York 10105
Registrant’s telephone number, including area code: (800) 221-5672
Date of fiscal year end: May 31, 2019
Date of reporting period: February 28, 2019
| ITEM 1. |
SCHEDULE OF INVESTMENTS.
|
AB Municipal Income Fund II
AB Arizona Portfolio
Portfolio of Investments
February 28, 2019 (unaudited)
