Morgan Stanley's Zezas Says the Muni Market Is More or Less a Rates Market

Taylor Riggs interviews Michael Jesus, chief municipal strategist at Morgan Stanley, discussing the impact of interest rates on municipal bonds. They explore the importance of yield curve steepness and duration strategy, emphasizing the need for downside protection in asset allocation. The conversation also covers sovereign risks and credit concerns, highlighting lessons from Puerto Rico and Illinois. Michael concludes with a cautious outlook on the muni market, advising an underweight position in certain sectors.

What lessons has the muni market learned from the situation in Puerto Rico?

What is Michael's perspective on systemic risks in the municipal market?