Volatility 'Great' for Muni Investors: Appleton's Fitts

The video discusses the current rate volatility and potential actions by the Federal Reserve, including possible basis point hikes. It highlights the impact of this volatility on municipal yields, presenting investment opportunities. The discussion extends to inflation's effects on local governments, noting their strong financial position post-pandemic but highlighting concerns about pensions. Finally, the video explores opportunities in credit markets, emphasizing the widening of credit spreads and the technical versus fundamental analysis of these opportunities.

What is the Federal Reserve's stance on inflation as discussed in the first section?

• The Fed is ignoring inflation.

• The Fed is committed to fighting inflation.

• The Fed is reducing interest rates.

• The Fed is undecided about inflation.

Why are municipal bonds considered attractive in the current market?

• They offer attractive yields on both absolute and relative bases.

• They are risk-free investments.

• They have lower yields than treasuries.

• They are unaffected by market volatility.

How have credit spreads changed recently, according to the third section?

• Credit spreads have narrowed.

• Credit spreads have remained the same.

• Credit spreads have widened.

• Credit spreads are no longer relevant.

What is a concern for local governments despite their good financial shape?

• Inflation and pension challenges.

• High tax revenues.

• Lack of stimulus funds.

• Excessive spending.

What is the impact of technicals on credit risk, as mentioned in the third section?

• Technicals have no impact on credit risk.

• Technicals have made credit risk irrelevant.

• Technicals have reduced credit risk.

• Technicals have increased the compensation for credit risk.