Muni Returns Will Remain Strong in 2020, BlackRock's Carney Says

The transcript discusses the continuation of market trends and issuance in 2019, highlighting record inflows and the balance of supply and demand. It addresses questions about the muni market, its perceived broken gauge, and its classification as a late cycle asset class. The analysis focuses on the influence of retail on mutual fund inflows and the benefits of municipal bonds. The discussion concludes with the technical aspects driving the market, emphasizing demand for high-quality fixed income assets.

What was a significant trend in the muni market during 2019?

• Decline in demand

• Poor performance

• Record inflows

• Decrease in supply

What is one reason the traditional muni treasury ratio might be considered broken?

• Increased supply of municipal bonds

• High volatility in the market

• Retail investors focusing on benefits rather than ratios

• Lack of mutual fund inflows

How are munis perceived in terms of the economic cycle?

• Early cycle asset

• Late cycle asset

• Mid cycle asset

• Not related to the economic cycle

What is a key reason retail investors are attracted to municipal bonds?

• High volatility

• Low credit quality

• Tax exemption

• High risk

What is driving the demand for high-quality fixed income assets in the muni market?

• Massive demand chasing limited assets

• High volatility in the market

• Increase in supply

• Decrease in retail interest