UBS On-Air: Market Moves
Top of the Morning: Municipal Market Guide - Investing in Quality Water Bonds
Jan 25, 2024
Kathleen McNamara discusses the strong performance of tax exempt municipal bonds, predicts positive outlook for municipal market. Highlights stability and security of investing in water and sewer bonds, recommends investing in well-established issuers with strong reserves.
07:52
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The tax-exempt municipal bond market experienced a 6.5% increase in 2023 due to a strong rally in November and December, countering significant losses from the previous year.
- Investing in high quality water and sewer bonds in the municipal market provides stability and reliable returns, with only two defaults in the last 52 years, making them an attractive option for investors seeking safety and revenue generation.
Deep dives
Muni Performance in 2023
In 2023, the tax-exempt municipal bond market performed much better than expected, with a 6.5% increase in the year. This was due to a robust rally in November and December, which countered the significant losses from the previous year. Despite volatility, the benchmark yields finished the year close to where they started. According to the UBS Chief Investment Office, Munis are expected to have positive returns in 2024, with lower benchmark treasury yields.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
