Muni High Yield: Technically Driven, Fundamentally Sound?
Strong technical factors driving the municipal market in the past are now being upended.
Over the last decade, portfolio managers increasingly turned toward high yield bonds in search for alpha. Going down the credit spectrum in search for yield proved to be a winning strategy. As a result, credit spreads declined to near all-time lows at the start of 2020. However, recent market concerns over the impact of the coronavirus have pushed treasury yields to all-time lows. With the rising risk of a global recession, investors are now fleeing risky assets.
Access the full report to find out:
What’s driving the municipal market?
How have municipal credit fundamentals performed?
What happens in the next downturn?