5min chapter

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Episode 35: A Deep Dive into Municipal Bonds

Guggenheim Macro Markets

CHAPTER

The Impact of Political Changes on Municipal Credit Ratings

Munis more than any other asset class are impacted by political decisions, particularly at a local level. Political changes can have a much bigger impact on the quality of a municipal credit. Ratings do matter, especially when it comes to relative value. How important are market technicals to municipal performance? I would say in 12 months of a year, in 11 of them, market valuations will be drawn by technical factors and then the remaining month will be Drawn by credit factors.

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