What the Volatility in Treasuries Means for Munis

The video discusses the volatility in the bond market, particularly focusing on municipal bonds. Despite recent market fluctuations, municipal bonds have shown stability and even outperformed treasury bonds. The discussion highlights opportunities across the credit spectrum, emphasizing that risk management is crucial. Client concerns about infrastructure and taxes are addressed, noting their potential impact on the muni market. The outlook for the year anticipates further volatility, but there is optimism about the credit profile of state and local governments.

What has been a significant factor in the recent rise of bond yields?

• Tighter Federal Reserve policies

• Decreased investor interest

• Increased credit risk

• Improved economic conditions

How did the municipal bond market perform compared to the treasury market in December?

• It remained stable and outperformed

• It underperformed significantly

• It was highly volatile

• It showed no significant change

What is a key driver of opportunities in the municipal bond market?

• Tax policies

• Economic growth

• Interest rates

• Credit risk

Which legislative agenda is considered less impactful on the municipal bond market?

• Build Back Better

• Infrastructure Bill

• Healthcare Reform

• Tax Reform

What is the outlook for the municipal bond market given the current volatility?

• Expecting significant downturns

• Bracing for further volatility

• Predicting a market crash

• Anticipating stable growth