MacKay Municipal Managers’ Post

Check out this podcast from MacKay Muni Managers for an update on the #municipalbond market!

Join Alex McLaughlin, CFA as he offers his thoughts on the volatility we’re seeing in the muni market, an update on issuance and an update on fundamentals. Listen here: https://bit.ly/47w3Jv6 #Muni360

Birch Creek Weekly Commentary: 3/1/24: Muni Market Caution Persists 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. 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

Birch Creek Weekly Commentary: 3/15/24: Resilient Muni Market Amidst Treasury Volatility The muni market remained resilient despite Treasury volatility, with yields rising modestly across most tenors. Bid lists surged throughout the week but accounts were focused on new issues. As valuations worsened, investors sought additional spread in the primary market, leading to strong demand for new issues, including in longer maturity bonds. In the high yield market, cash inflows persisted, prompting interest in unique issuers. While benchmark names saw some weakening, primary deals were met with heavy oversubscriptions, indicating continued investor appetite for specific opportunities. The HY new issue pipeline is increasing, which should offer welcome relief to funds, although speculative deals may still face caution. 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

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.

The municipal market continues a positive run of performance with no break for the ‘dog days of summer’. Read about what’s happing in the muni market in the September edition of The Bond Bulletin. #markets #assetmanagement #fixedincome #thoughtleadership

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

Steep Muni Curve There are parts of the Muni Bond Cruve that are steep. i.e. the 10-25 year part of the curve is 60bps steep. Buying long muni bonds involves an incredible amount of risk. Those 3.17% yield bonds have lost roughly three months of income today.

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