Birch Creek Capital, LLC’s Post

The muni market remained cautious amid rich valuations and looming supply/demand challenges, with interest primarily in SMA maturities and bonds offering higher yields. After appearing to show some cracks, dealers managed to pare down competitive new issue balances as treasury yields fell. Despite the late-week treasury rally, muni investors are awaiting further compelling valuations to reignite excitement.

Birch Creek Weekly Commentary: 6/14/24: Falling Yields And Light Primary Lead To Further Muni Gains The muni market experienced a more subdued tone this week despite the favorable inflation data and rate cut speculation affecting treasuries. The AAA benchmark curve underperformed but still saw yields fall by 10-13bps. HY muni investors continued to see tighter spreads amid low supply and strong cash inflows, highlighted by the oversubscription of a major BBB- rated bond deal. Additionally, a court ruling reversed previous findings in the PREPA bankruptcy case, significantly improving bondholder positions. If you find this interesting and want to receive our commentaries sent directly to your inbox so you don't miss out on any content, please sign up at link below: https://lnkd.in/eZp7RAeJ #municipalbonds #municipal #municipalbond #highyield #commentary #marketvolatility #highyieldbonds #investmentinsights #MuniBonds

Muni bond demand remains stronger than the new issue calendar. Outsized levels of cash (and short-term holdings) need to be reinvested further out on the yield curve. See more in this week’s commentary. #weeklyinsights

Muni bond demand remains stronger than the new issue calendar. Outsized levels of cash (and short-term holdings) need to be reinvested further out on the yield curve. See more in this week’s commentary. #weeklyinsights

The muni market remained relatively stable despite the rise in Treasury yields, with the AAA MMD curve seeing minimal changes throughout the week. Investors appeared eager to invest cash at higher absolute yields, particularly considering the upcoming seasonally strong period from May to September. Primary deals, like Harvard University's, saw modest subscriptions with some concessions, indicating continued investor interest. In the HY space, bonds showed resilience, outperforming both higher grades and treasuries as major deals remained scarce. However, increased distress in sectors like senior living and hospitals has led to some selling of distressed credits, suggesting a potential growing opportunity set in the future.

Muni bond demand remains stronger than the new issue calendar. Outsized levels of cash (and short-term holdings) need to be reinvested further out on the yield curve. See more in this week’s commentary. #weeklyinsights

Muni bond demand remains stronger than the new issue calendar. Outsized levels of cash (and short-term holdings) need to be reinvested further out on the yield curve. See more in this week’s commentary. #weeklyinsights

Birch Creek Weekly Commentary: 7/26/24: Muni Demand Tempered By Heavy Supply But HY Gains Persist Fixed income markets mostly rallied this week as investors began to anticipate three rate cuts by the Fed before year-end. In the muni market, stability was evident with the benchmark MMD curve barely moving, although munis underperformed treasuries. Inflows into long-term funds and increased reinvestment cash hinted at growing interest, though secondary market activity showed a preference for new issues over existing positions. High-yield munis remained stable, with notable demand and trading volumes for less frequently traded credits and a closed-end fund liquidating its portfolio at strong levels, indicating continued high demand.  If you find this interesting and want to receive our commentaries sent directly to your inbox so you don't miss out on any content, please sign up at link below: https://lnkd.in/eZp7RAeJ #municipalbonds #municipal #municipalbond #highyield #commentary #marketvolatility #highyieldbonds #investmentinsights #MuniBonds

Muni bond demand remains stronger than the new issue calendar. Outsized levels of cash (and short-term holdings) need to be reinvested further out on the yield curve. See more in this week’s commentary. #weeklyinsights

Birch Creek Weekly Commentary: 4/12/24: Muni Market Resilience In Face of Rising Rates The muni market remained relatively stable despite the rise in Treasury yields, with the AAA MMD curve seeing minimal changes throughout the week. Investors appeared eager to invest cash at higher absolute yields, particularly considering the upcoming seasonally strong period from May to September. Primary deals, like Harvard University's, saw modest subscriptions with some concessions, indicating continued investor interest. In the HY space, bonds showed resilience, outperforming both higher grades and treasuries as major deals remained scarce. However, increased distress in sectors like senior living and hospitals has led to some selling of distressed credits, suggesting a potential growing opportunity set in the future. If you find this interesting and want to receive our commentaries sent directly to your inbox so you don't miss out on any content, please sign up at link below: https://lnkd.in/eZp7RAeJ #municipalbonds #municipal #municipalbond #highyield #commentary #marketvolatility #highyieldbonds #investmentinsights #MuniBonds