Muni Market’s Performance Wilts in Worst Month Since February

Munis have declined about 1.5% in August through Wednesday, on track for the grimmest performance since a 2.3% slide in February, according to Bloomberg index data. Fixed-income assets have declined broadly this month with the Federal Reserve signaling that it may keep hiking interest rates to muffle a still-robust economy.

“Munis are not cheap enough yet,” the senior US municipals strategist said in an interview. Treasuries, or “even single- or double-A corporate rates, they’re much more attractive. They’re much larger markets and have a lot more liquidity.” With volatility in rates likely to be more muted going forward, it points to a better setup for reinvestment flows into fixed income, BI’s Kazatsky and colleague Karen Altamirano wrote in a research report this week. Nonetheless, they still anticipate flat muni returns in September, in part as supply likely outpaces demand.However, Eve Lando, portfolio manager at Thornburg Investment Management, sees promise.

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

San Francisco Taps Muni Market for Affordable Housing ProjectA San Francisco redevelopment agency is borrowing $60 million in the municipal bond market this week to help finance affordable housing in a city that has some of the highest rents in the nation and is suffering from an exodus of people.
Source: BNNBloomberg - 🏆 83. / 50 Read more »