The municipal bond market started the year with negative total returns – but this could be good news for investors looking for an entry point. Interest rates are rising along with the stock market due to the reopening of optimism and substantial federal spending. The municipal market received a lot of stimulus over the past year – a trend that should continue and give tailwind to both credit bases and valuations. While there are still no clear details of how President Joe Biden’s infrastructure plan will affect municipal issuers, it is possible that the roll-back of pre-refund deals and infrastructure-related emissions will be a catalyst for significantly higher supply going forward.
Discuss with us:
- Update and outlook of the municipal market
- Solutions for customers who are disappointed with low returns and are concerned about higher rates
- The state of municipal lending – uncovering opportunities in a low interest rate environment
CFP, CIMA®, CPWA®, CIMC®, RMA® and AEP® CE credits have been applied for and have yet to be approved.
Jon Rocafort, CFA
Managing Director, SMA Portfolio Management
Chris Harshman, CFA
Director, Portfolio Management
David Armstrong – presenter
Editor-in-chief and executive director for content and user engagement