Eve Lando, portfolio manager and managing director on Thornburg’s municipal bond team, says the cost of storms like the freeze that gripped Texas, coastal hurricanes or California wildfires top the list of her worries when it comes to the municipal market.
If enacted, the Biden infrastructure proposal could bring more municipal bond supply, while the personal income tax proposal could bring more demand.
Thornburg is pleased to announce the addition of John Bonnell, CFA, as portfolio manager and managing director on Thornburg’s municipal bond team.
The low interest rate environment from COVID-19-related rate cuts is inciting municipal bond investors and funds to seek risky yields.
"Green" municipal bonds don't always show their true color.
Most muni bonds issue proceeds are used to finance social and environmental needs, a mission match for ESG investors.
Sharp demand for yield has led to froth in the bond markets. Nowhere is this more evident than in the muni bond market, where some issuers are playing fast and loose with investor protections.
Give a boost to your muni portfolio.
Consider adding VRDOs to your muni bond allocation.
Caveat emptor: current technical supply and demand flows favor issuers more than buyers. But diligent, disciplined investors can always find attractively priced, fundamentally sound bonds.
The volatility of short-term rates, however, means the variable rate structure isn't a silver bullet.