BlackRock's Carney Taking Defensive Approach to Munis

The video discusses the impact of Treasury yield fluctuations on the municipal bond market, highlighting the defensive nature of munis compared to other fixed income sectors. It explores historical rate hiking cycles and their effects on munis, suggesting strategic adjustments in duration and quality. The discussion also touches on the pandemic recovery, emphasizing a focus on defensive sectors like transportation and education.

What are the implications of the 10-year yield hitting close to 2% on the municipal bond market?

How have municipal bonds performed compared to U.S. Treasuries and corporate investment-grade bonds year to date?

What factors contribute to the defensiveness of the municipal bond market?

In what ways did past rate hiking cycles affect the performance of municipal bonds?

How does the pandemic recovery trade influence investment strategies in the municipal bond market?