Segall Bryant & Hamill
May 11, 2023
Segall Bryant & Hamill leverages its proprietary investment research, deep industry experience and long‐tenured team to provide intelligently constructed portfolio solutions.

SBH April Municipal Market Update

April 2023
SEGALL BRYANT & HAMILL
• www.sbhic.com
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12/30/2020
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4/30/2023
MAJOR MUNICIPAL BOND INDEX RETURNS
(%)
Municipal Market Update | April 2023
Source: All data from Bloomberg as of 4/30/23.
This update provides an overview of certain broad
-based Fixed Income benchmarks and does not include performance of the Segall B
ryant & Hamill Fixed Income styles
. Past
performance cannot guarantee future results. All investments involve risk, including the possible loss of capital.
All opinions expressed in this material are solely the opinions of Segall
Bryant & Hamill. You should not treat any opinion expressed as a specific inducement to make a particular investment or follo
w a
particular strategy, but only as an expression of the
manager’s opinions. The opinions expressed are based upon information the manager considers reliable, but completeness or acc
uracy is not warranted, and it should not be relied upon
as such. Market conditions are subject to change at any time, and no forecast can be guaranteed.
Any and all
information perceived from this material does not constitute financial,
legal, tax or other professional advice and is not intended as a substitute for consultation with a qualified professional. T
he
manager’s statements and opinions are subject to change
without notice, and Segall Bryant & Hamill is not under any obligation to update or correct any information provided in this
mat
erial.
SUMMARY
MUNICIPAL & TAX EQUIVALENT YIELDS
MUNICIPAL/TREASURY RATIOS
A & AA REVENUE CREDIT SPREADS
Yield to Worst
Duration (years)
YTD
Return
Bloomberg 1
-5 Year Blend
Municipal Bond Index
2.97
2.59
1.05
Bloomberg 1
-
15 Year Municipal
Bond Index
3.04
4.49
1.99
Bloomberg Municipal Long
Bond Index (22+)
4.23
10.31
4.07
30 Year AAA Muni/Treasury Ratio (%)
10 Year
3 Year
AA Muni Revenue
A Muni Revenue
Municipals in the short and intermediate index
lagged taxable bonds as performance was
somewhat pulled forward last month. Low yield
levels on indexes will continue to hurt, as they are
more dependent on rates continuing to fall for
positive price performance.
The inversion through the belly of the curve
(2-10 years) only deepened through the quarter.
Relentless buying for SMAs appears to be the
culprit, as buying certain maturities appear to be
prioritized over adding value.
We continue to see value in a heavier barbell
approach with sub 1 and 12+ years.
Higher dispersion between the below data points
denotes a steeper municipal curve versus Treasuries.
Compensation for credit continues to be significantly wider
than we have seen in some time, however, we expect
spreads to be under pressure going forward as credit comes
back into focus.
April 2023
SEGALL BRYANT & HAMILL
• www.sbhic.com
Strategy
Duration
Range
Description
Benchmark
Inception
Vehicle
Options
Municipal
Short Maturity
Duration:
0.5
- 2 years
Seeks to provide attractive tax
-adjusted
yield with minimal interest rate risk
through investments typically in
0-2 year
municipal securities.
Bloomberg
Municipal
1 Year Bond
Index
11/1/2022
Separate
Account
1-10 Year
Managed
Municipal
Duration:
3 - 5 years
Seeks to maximize after
-tax total return
opportunities through investments across
the front end of the yield curve. The
strategy also seeks to provide a better
return profile than a laddered
strategy,
and
will generally have a higher average
credit quality and more conservative
duration.
Bloomberg
5 Year Municipal
Bond Index
1/1/2003
Separate
Account
Enhanced
Intermediate
Municipal
Duration:
4 - 6.5 years
Seeks to emphasize after
-tax total return
while preserving and enhancing capital.
The intermediate strategy utilizes active
yield curve, credit, and structure
positioning. The strategy focuses on taking
advantage of inefficiencies within
investment grade credit and bond
structures to maximize total return while
matching the interest rate risk profile of
the underlying index.
Bloomberg 1
-
15
Year Municipal
Bond Index
7/1/1991
Separate
Account
Tax
Advantaged
Municipal
Duration:
3 - 7 years
Seeks to utilize active yield curve, credit,
and structure positioning while having the
ability to tactically allocate up to 30% of
portfolios in short maturity taxable bonds.
The flexibility in this intermediate strategy
allows portfolios to potentially increase
after
-tax yields while increasing liquidity
and reducing volatility.
Bloomberg 1
-
15
Year Municipal
Bond Index
1/1/2017
Separate
Account
Municipal
Opportunities
Duration:
3 - 7 years
Bottom
-up municipal credit fund
structured to have wide enough
parameters to take advantage of
mispricing and valuation swings in the
municipal market.
Bloomberg 1
-
15
Year Municipal
Bond Index
12/16/2016
Mutual Fund
(WTTAX,
WITAX)
Colorado Tax
Free
Duration:
3 - 7 years
Bottom up, investment
-grade quality fund
with an intermediate maturity emphasis
that seeks double tax
-exempt income for
Colorado investors.
Bloomberg 1
-
15
Year Municipal
Bond Index
6/1/1991
Separate
Account,
Mutual Fund
(WTCOX,
WICOX)
SBH Municipal Fixed Income Platform
The
Bloomberg 1
-5 Year Blend Municipal Bond
Index consists of a broad selection of investment grade general obligation and revenue municipal bonds of maturities ranging
fro
m one
year to five years. The
Bloomberg U.S. 1-
15 Year Municipal Bond Index
measures the performance of investment grade (Moody’s Investor Services
Aaa
to Baa, Standard and Poor’s
Corporation AAA to BBB) general obligation and revenue bonds with maturities ranging from 1 to 17 years. It is a broad index
tha
t is representative of the tax
-exempt bond market. An
investor cannot invest directly in an index. The
Bloomberg Municipal Long Bond Index (22+)
is a subset of the Bloomberg Municipal Bond Index including maturities of 23 or more years.
Yield
to Worst
is the lowest potential bond yield received without the issuer defaulting; it assumes the worst
-case scenario, or earliest redem
ption possible under terms of the bond.
Duration
is a calculation of the average life of a bond (or portfolio of bonds) that is a useful measure of the bond's price sensitivi
ty
to interest rate changes. The higher the duration
number, the greater the risk and reward potential of the bond.
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funds of the Segall Bryant & Hamill Trust are distributed by
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Fund Distributors, LLC. Separately managed accounts are not distributed by
Ultimus
Fund Distributors, LLC.
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ain the prospectus that contains this and other
information about the Fund(s) please call (800) 392
-2673 or visit us online at www.sbhfunds.com. Please read the prospectus car
efully before investing.
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involves risk, including possible loss of principal. 16855428
-UFD-
5/9/2023
MUTUAL FUNDS
SEPARATE ACCOUNTS
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