BlackRock's Carney: Munis to Hold Well Amid Rising Rates

The video discusses the market's reaction to potential Federal Reserve interest rate changes, focusing on munis and fixed income markets. It highlights the volatility in bond markets and the resulting opportunities, emphasizing the importance of stability. The video also explores current investment opportunities in munis, particularly in the front end and intermediate parts of the yield curve, and considers the risks and benefits of high yield credit investments.

What is the market anticipating from the Federal Reserve's upcoming meetings?

• No change in interest rates

• A 50 basis point move

• A 25 basis point move

• A decrease in interest rates

How have municipal bonds traditionally reacted to rising interest rates?

• They lose all value

• They become highly volatile

• They tend to decline significantly

• They hold up relatively well

What has changed in the bond market's supply and demand dynamics recently?

• Supply has significantly outpaced demand

• Demand has significantly outpaced supply

• Supply and demand are now more balanced

• There is no change in supply and demand

Where is the current opportunity in the municipal bond market?

• In short-term bonds only

• In the front end and intermediate of the yield curve

• In the long end of the yield curve

• In high-risk bonds

What additional components does high yield credit add?

• Shorter duration and less credit risk

• No duration and no credit risk

• Only liquidity risk

• Longer duration and more credit risk