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Episode 35: A Deep Dive into Municipal Bonds

Guggenheim Macro Markets

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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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