Eaton Vance's Patel Sees Infrastructure Optimism in Muni Market

The video discusses the potential impact of infrastructure plans on the economy, particularly in light of the recent midterm elections. It highlights opportunities in the municipal bond market, with high tax-free rates and potential new deals. The discussion also covers the optimism surrounding infrastructure deals post-election and the future of the muni market, including possible new issuances and the influence of Congress on bond structures.

What is the potential impact of the Democrats taking the House on infrastructure plans?

• It will halt all infrastructure developments.

• It will increase interest rates.

• It will lead to immediate tax cuts.

• It could facilitate a mutual infrastructure plan.

Why is the municipal bond market optimistic despite high tax rates?

• Because of a decrease in infrastructure projects.

• Because of the potential for further tax cuts.

• Due to a lack of new deals on the ballots.

• Due to the high-grade tax-free rates available.

What was the voter sentiment towards infrastructure during the election?

• Voters preferred tax cuts over infrastructure.

• Voters were optimistic about new infrastructure deals.

• Voters were indifferent to infrastructure changes.

• Voters were against new infrastructure deals.

What could increase the issuance in the municipal market?

• A reduction in infrastructure projects.

• An increase in federal interest rates.

• Supportive congressional actions for Build America Bonds.

• A decrease in tax rates.

What is the expected trend for infrastructure deals in the municipal market?

• Stagnation in the market.

• A decrease in new deals.

• An increase in infrastructure deals.

• A shift towards private sector funding.