Why Dwindling Muni Sales May Provide Opportunities

The video discusses the current trends in the US municipal bond market, highlighting a slowdown in new issuances due to COVID relief funds and high borrowing costs. Christopher Brigati, a municipal investment expert, explains the supply and demand dynamics, noting steady demand despite lighter supply. The video compares municipal bonds with treasuries, emphasizing robust buyer participation. It also covers strategies for tax loss harvesting and reinvestment, suggesting opportunities in 20-year yields and the front end of the curve. The discussion provides insights into market conditions and investment strategies.

What is one reason for the slowdown in new US state and local government bond issuances?

• Excessive supply of bonds

• High borrowing costs

• Increased demand for bonds

• Lack of interest from investors

How has the demand for municipal bonds been described amid a lighter supply?

• Weak and inconsistent

• Unpredictable

• Strong and steady

• Declining rapidly

What is the relationship between municipal bonds and treasuries in terms of demand?

• Municipal bonds have weaker demand than treasuries

• Demand for municipal bonds is relatively robust compared to treasuries

• Treasuries are more attractive to investors than municipal bonds

• Municipal bonds are less popular due to higher risks

Why is early tax loss harvesting recommended in the municipal bond market?

• To reduce borrowing costs

• To increase bond supply

• To take advantage of reinvestment opportunities

• To avoid higher taxes

What makes the current yield levels in the municipal bond market attractive?

• They are higher than pre-2008 levels

• They are lower than historical levels

• They are unaffected by market fluctuations

• They are consistent with treasury yields