Hilltop's Kozlik Sees Opportunities in Mass Transit

The video discusses the impact of rising treasury bond yields and a hawkish Federal Reserve on the bond market. Tom Kozlik from Hilltop Securities provides insights into municipal bond issuance forecasts, highlighting challenges due to increased yields. The discussion shifts to mass transit, emphasizing potential government support and investment opportunities. The video also covers inflation concerns, credit quality of state and local governments, and the implications of fiscal stimulus measures. Finally, it addresses pension liabilities and their effect on financial stability.

What is the main reason for the decline in refundings in the bond market?

• Increased demand for new money issuance

• Higher levels of market yields

• Lack of investor interest

• Government intervention

What is the contrarian view expressed about mass transit in the discussion?

• Private investment will replace public funding

• Mass transit will remain stagnant

• Government support will boost mass transit

• Mass transit will decline further

How does the Inflation Reduction Act potentially impact state and local governments?

• It increases pension liabilities

• It provides additional funding for public finance

• It reduces the need for fiscal stimulus

• It poses a risk to tax exemptions

What is the current state of pension liabilities compared to 2019?

• They have no impact on credit quality

• They are back to 2019 levels

• They are worse than in 2019

• They have significantly improved

What is the suggested strategy for investors regarding state and local government credits?

• Focus on corporate bonds

• Trade out of risky credits

• Hold onto current investments

• Invest in lower credit quality issues