Cumberland CIO Kotok on Where to Invest in the Muni Market

The video discusses California's fiscal management, highlighting its improved credit rating due to strong fiscal policies under Jerry Brown. It addresses the challenges faced by U.S. states, including underfunded pensions and infrastructure needs. The video explores investment opportunities in municipal bonds and the role of asset sales in improving credit ratings. It also examines the pressure on general obligation bonds and the disparity in state credit ratings, emphasizing the importance of credit analysis and the potential risks in the municipal market.

What is the significance of asset sales for states dealing with underfunded pension plans?

How does the credit rating of states like Utah compare to other states in the U.S.?

What are the potential consequences if states do not address their pension liabilities?