Kayne Anderson's Friedricks Sees Huge Demand for Munis

The video discusses the current state of the municipal bond market, highlighting the robust demand despite negative headlines about cities like San Francisco. Kim Friedrichs explains that the high demand is not reflected in spreads due to limited supply, especially in high-tax states. Despite downgrades by rating agencies, investors continue to buy bonds, driven by the need for tax-free income. The discussion also covers the potential for future changes in muni market issuance, influenced by economic conditions and interest rates.

How do supply and demand dynamics affect the pricing of municipal bonds?

What are the potential future changes in the muni market as discussed by Kim?

What role do natural disasters play in changing the funding needs of municipalities?