What You May be Overlooking in the Muni Market
Investors have seen large losses in nearly every corner of the fixed income market this year. While it may not feel like it, municipals have protected on the downside relative to their taxable counterparts.
Nick Foley, Senior Portfolio Manager, discusses areas of the market often overlooked by investors—including liquidity and new issue supply—and where he believes investors can find opportunities in the muni market as we head into 2023.
Key Takeaways
- Short maturity municipal bonds are currently providing an “income cushion” for investors.
- We are undergoing the largest and longest outflow cycle in history for municipal bonds.
- Municipal supply is only about 10% below average this year (2022) and the market remains very open and affordable for issuers bringing debt to market.
Additional Resources:
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