Western Asset Sees No Fundamental Justification to Sell Muni Bonds

The video discusses the current state of the municipal bond market, emphasizing stability and strong fundamentals despite rising treasury yields. It highlights significant ETF outflows from major firms like BlackRock and Vanguard, driven by market technicals. The speaker outlines investment strategies, focusing on adding risk through floating rate securities and managing portfolios with modest rate risk. The discussion also touches on political risks, particularly related to infrastructure investments, and the potential impact of new policymakers in Washington, D.C.

How are rising treasury yields impacting the municipal bond market?

What factors are contributing to the current state of the municipal bond market?

What is the significance of stable tax receipts in the context of municipal bonds?

Discuss the implications of ETF outflows on the municipal bond market.

What role does political risk play in investment decisions related to infrastructure?