FICC Focus Masters of the Muniverse: Munis Await Institutional Backstop
Sep 9, 2025
Eric Kazatsky, Managing Director at Mackay Shields and former Head of Municipal Strategy at Bloomberg Intelligence, dives into the municipal bond market's slow recovery. He discusses the potential resurgence of institutional investors as tax clarity improves. The conversation explores innovative shifts toward private placements in sectors like education and healthcare. Kazatsky also shares insights on curve positioning amid interest rate changes, blending market analysis with personal anecdotes about Disney and comic book fandoms for a light-hearted touch.
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Engage Clients With Iterative Communication
- Communicate market views directly with clients to shape strategy and product outreach.
- Use regular, iterative client touch pieces to refine positioning and capture investor feedback.
Fed Decision Will Drive Near-Term Munis
- September performance hinges on the Fed decision and investor reaction rather than supply alone.
- Institutional and retail flows must reignite to fully capture the muni relative-value story.
Institutional Buyers Are Tiptoeing Back In
- Banks, insurers and crossover buyers are tentatively returning as tax clarity improves.
- Their re-entry could firm long-end ratios and attract retail flows later in the cycle.