Munis Benefiting From System 'Flush With Cash': Eagle Asset's Camp

The transcript discusses the current state of the municipal bond market, highlighting issues such as oversubscription, international buyer interest, and the impact of migration and tax changes. It also covers the rise of green bonds and infrastructure investment, and concludes with an analysis of credit versus duration in the market, considering factors like inflation and consumer spending.

What is one reason municipal bonds are considered overbought in the near term?

• High loan growth

• Decrease in retail interest

• Low yield in safe assets

• Increase in tax rates

What has contributed to the oversubscription of new municipal bond issues?

• Decrease in international buyers

• High demand and limited supply

• Reduction in federal spending

• Increase in loan growth

What is a potential impact of migration trends on tax policies?

• Repeal of the SALT cap

• Lower marginal tax rates

• Increase in SALT cap

• Decrease in property values

What is expected to increase in the municipal market due to Biden's climate agenda?

• Green bonds

• Traditional bonds

• Foreign investments

• Corporate bonds

What economic factor is expected to pose a challenge to duration in the municipal market?

• Shortened supply delivery times

• Decreased consumer spending

• Deflation

• Inflation