UBS On-Air: Market Moves
Top of the Morning: Muni Market Guide - Abundant supply tempers performance
Sep 27, 2024
Sudip Mukherjee, a Senior Municipal Strategist for the Americas at UBS Chief Investment Office, brings his expertise to discuss the relaunch of the Municipal Market Guide. He analyzes shifting performance trends in the muni market and addresses the impact of record supply on investment-grade bonds. The conversation delves into tax-equivalent yields for high-bracket investors and explores the challenges faced by private higher education institutions. Sudip also sheds light on the effects of recent Federal Reserve rate cuts and upcoming trends related to municipal tax exemptions.
13:10
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Quick takeaways
- The recent surge in supply has negatively impacted the performance of tax-exempt investment-grade munis while taxable and high-yield munis have fared better.
- The spotlight on the private higher education sector highlights significant financial disparities that necessitate careful evaluation of investment opportunities amidst demographic challenges.
Deep dives
Overview of the Municipal Market Guide
The recent relaunch of the Municipal Market Guide presents a thoroughly revised publication aimed at providing insights into the municipal market. It includes sections such as market view, relative value analysis, and discussions about Treasury rates and their impact on the muni market. The newly introduced 'CIO Preferences' section consolidates the Chief Investment Office's recommendations concerning market duration curve positioning and credit quality. Additionally, the guide retains a spotlight section that focuses on key sectors or issues within the municipal market, drawing on insights from more detailed risk framework reports.
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