Randy Schwimmer’s Post

High yield municipals are a longer-duration asset class, and the muni yield curve is relatively steep, so investors may be rewarded for locking in yields and positioning for eventual rate cuts. https://ow.ly/KqQj50S2zim

Treasury yields rebounded as strong economic data and cautious Federal Reserve comments prompted a reassessment of expectations for aggressive rate cuts in March. The municipal bond market experienced decreased activity due to high valuations and rising treasury yields, leading to a slowdown in trading despite Lipper reported the largest weekly inflow of $897mm in 25 weeks. Municipal bond funds, flush with cash but finding the market unattractive, focused on new issues and spreadier names. In the high-yield market, ETF redeems towards the end of the week provided opportunities for funds to invest at adjusted valuations, with strong demand for relatively safe yield evident in oversubscriptions, such as the 30x for a BBB- rated student housing deal priced by RBC. If you find this interesting and want to receive our commentaries sent directly to your inbox so you don't miss out on any content, please sign up at link below: https://lnkd.in/eZp7RAeJ #municipalbonds #municipal #municipalbonds #highyield #commentary #marketvolatility #highyieldbonds #investmentinsights #muniland

The municipal bond market had a quiet week with balanced fund flows. Investors shifted cash from short duration and IG funds to long duration and HY ones due to expectations of lower interest rates later in the year and the desire for excess yield. Muni valuations remained stretched, prompting some profit-taking ahead of anticipated increased supply. In the high-yield sector, the market grinded tighter, causing sellers to attempt to unload risky holdings. However, buyers focused on just the strongest names on the lists, while avoiding speculative and distressed issuers. If you find this interesting and want to receive our commentaries sent directly to your inbox so you don't miss out on any content, please sign up at link below: https://lnkd.in/eZp7RAeJ #municipalbonds #municipal #municipalbonds #highyield #commentary #marketvolatility #highyieldbonds #investmentinsights #muniland

Birch Creek Weekly Commentary: 2/23/24: Stretched Valuations And Lack Of Supply Prompt Quiet Week The municipal bond market had a quiet week with balanced fund flows. Investors shifted cash from short duration and IG funds to long duration and HY ones due to expectations of lower interest rates later in the year and the desire for excess yield. Muni valuations remained stretched, prompting some profit-taking ahead of anticipated increased supply. In the high-yield sector, the market grinded tighter, causing sellers to attempt to unload risky holdings. However, buyers focused on just the strongest names on the lists, while avoiding speculative and distressed issuers. If you find this interesting and want to receive our commentaries sent directly to your inbox so you don't miss out on any content, please sign up at link below: https://lnkd.in/eZp7RAeJ #municipalbonds  #municipal #municipalbond #highyield #commentary #marketvolatility #highyieldbonds #investmentinsights #MuniBonds

Weekly Municipals Primary Review Primary Supply Declines Further Into Year-End; Strong Demand Across Sectors as Muni Market Enters Reinvestment Period Reorg | Hoa P. Nguyen, Marvis Gutierrez “We expect the Fed to remain on hold and the positive tone for rates to continue to test the Fed ‘for how long’ camp,” said JAMES PRUSKOWSKI, chief investment officer at 16Rock Asset Management. JAMES PRUSKOWSKI noted that investors are just beginning to get comfortable with the idea that the Fed hiking cycle is over and municipal bonds are entering a positive reinvestment period. “Despite optically rich Treasury ratios, muni credit and pretax multiple on yields is very compelling,” he said. #muniland #municipalbonds #supply #fomc #taxes #ratios #fed #valueinvesting

Discover the ups and downs of the municipal bond market in 2023 and what to expect for muni investors in 2024. Despite volatility, positive returns were achieved, and factors such as valuations, fundamentals, and supply/demand dynamics will play a crucial role in performance going forward.

Discover the ups and downs of the municipal bond market in 2023 and what to expect for muni investors in 2024. Despite volatility, positive returns were achieved, and factors such as valuations, fundamentals, and supply/demand dynamics will play a crucial role in performance going forward.

Discover the ups and downs of the municipal bond market in 2023 and what to expect for muni investors in 2024. Despite volatility, positive returns were achieved, and factors such as valuations, fundamentals, and supply/demand dynamics will play a crucial role in performance going forward.

February’s municipal market could effectively be described as uneventful and not tipping the scales of performance or relative value in one direction or the other. Read about what’s happing in the muni market in the March edition of The Bond Bulletin. #markets #assetmanagement #fixedincome #thoughtleadership

Discover the ups and downs of the municipal bond market in 2023 and what to expect for muni investors in 2024. Despite volatility, positive returns were achieved, and factors such as valuations, fundamentals, and supply/demand dynamics will play a crucial role in performance going forward.