Why Muni Managers Are So Bullish

The video discusses the positive outlook on municipal bonds, highlighting strong credit quality due to federal relief. It addresses potential risks and the need for structural balance in portfolios. The impact of unspent COVID funds and challenges in public transit are explored. Finally, the SVB fallout and the market's capacity to absorb municipal debt are analyzed.

What is one reason for the positive outlook on municipal bonds according to Dan Close?

• Increased federal taxes

• Strong credit quality due to federal relief

• Rising interest rates

• Decreased demand for municipal bonds

What is a potential risk associated with the fiscal stimulus received by municipalities?

• Increased inflation

• Decreased public spending

• Higher interest rates

• Mismanagement of funds

Why do some experts dismiss the retraction of unused COVID funds as a real threat?

• The funds are protected by law

• The funds are not significant

• Credit improvements have already occurred

• The funds have already been spent

What is a major concern for public transit systems in cities like New York?

• High operational costs

• Low ridership levels post-pandemic

• Lack of government support

• Overcrowding

What is one reason the market is expected to absorb the municipal debt sales from the SVB fallout?

• High demand for municipal bonds

• Rising interest rates

• FDIC's gradual sale approach

• Increased government spending