Goldman Sachs Asset Management Goes Inside the Municipal Bond Rally

The video discusses the current state of the municipal bond market, highlighting record inflows and investor confidence. It explores the impact of the 2008 financial crisis on municipal bonds, focusing on changes in credit ratings and spreads. The discussion also covers the potential effects of state tax migration, particularly in California, and the influence of the tech boom. The video concludes with insights into bond investment strategies and the possible impact of trade wars on the municipal market.

What is one of the main factors driving the Muni to Treasury relationship?

• Government policies

• Inflation rates

• Technical factors like supply and demand

• Interest rates

How did the municipal market change after 2008?

• It became more reliant on insurance wraps.

• It shifted towards high-yield bonds.

• It saw a recalibration of credit spreads.

• It focused more on international investments.

What is a potential future factor affecting migration in California?

• Introduction of new environmental laws

• Increase in property taxes

• Decrease in tech industry growth

• Changes in federal tax policies

Which type of bond is currently out of fashion according to the discussion?

• Fixed coupon bonds

• Zero coupon bonds

• Floating rate notes

• Convertible bonds

Which areas might be most affected by tariffs and trade wars in the municipal market?

• Port cities and manufacturing areas

• Rural areas

• Suburban regions

• Tourist destinations