High-Yield Munis Are the Place to Be: Neuberger's Iselin

The video discusses the strong performance of the municipal bond market, particularly high yield munis, driven by economic recovery and fiscal support. It explores the implications of low riskless rates and potential tax changes on investment strategies. The impact of treasury rate fluctuations and Federal Reserve policies on the muni market is analyzed, highlighting the importance of monitoring these factors. The video concludes with investment recommendations, emphasizing floating rate bonds as a strategy to counter rising rates.

What has been a key factor in the strong performance of high yield munis this year?

• Rising interest rates

• Economic recovery and fiscal support

• Decreased investor interest

• Increased inflation

How might changes in tax policies affect the attractiveness of munis?

• Lower taxes increase muni demand

• Tax changes have no impact on munis

• Higher taxes make munis less attractive

• Stable taxes maintain muni appeal

What is the expected impact of treasury rate changes on the muni market?

• Lower treasury rates increase muni supply

• No impact on muni investments

• Higher treasury rates may lead to fund outflows

• Increased volatility in muni prices

What strategy is suggested to counteract the effects of rising interest rates?

• Reducing bond investments

• Increasing cash holdings

• Investing in floating rate bonds

• Investing in fixed rate bonds

What is a potential benefit of floating rate bonds in a rising rate environment?

• Increased coupon payments

• Decreased bond value

• Fixed interest payments

• Lower market demand