July 28, 2022
Today’s report discusses Municipal bond strategy at a time when Treasury yields have peaked but risky spreads have not. The good news is that the starting point for S&L finances is the best it has ever been, providing ample cushion to help weather revenue disappointments. However, this must be weighed against the darkening economic outlook and poor market liquidity. Muni yields and spreads are attractive out the curve, but should total return investors and asset allocators take the duration risk?