Municipal Bond Market Preps for Reinvestment Season

Nisha, a portfolio manager at Eaton Vance, discusses the significance of green bonds, which are issued in the municipal bond market to fund environmentally and socially impactful projects. She highlights Eaton Vance's partnership with Calvert to promote responsible investing. The conversation also covers the reinvestment coupon season starting June 1st, which is expected to see significant market demand and influence performance, particularly in the short and intermediate parts of the yield curve. Investors can achieve substantial yield by focusing on these areas.

What is the primary purpose of issuing green bonds in the municipal bond market?

• To support local businesses

• To fund projects with environmental or social benefits

• To increase municipal tax revenue

• To reduce government debt

Which of the following is an example of a project funded by green bonds?

• Building a new shopping mall

• Replacing asbestos pipes with recycled materials

• Constructing a sports stadium

• Developing a new highway

What is the goal of Eaton Vance's partnership with Calvert?

• To maximize short-term profits

• To create a framework for responsible investing

• To reduce operational costs

• To expand into international markets

During the reinvestment coupon season, what is expected to happen in the market?

• An increase in supply over demand

• A decrease in investment flows

• A decline in investor interest

• Heavy reinvestment flows exceeding supply

Where can investors pick up the most yield during the reinvestment season?

• In long-term bonds

• In short and intermediate parts of the curve

• In high-risk stocks

• In foreign currency investments