Rising Yields Setting Up Opportunity
Since early August, intermediate and long US Treasury yields have risen significantly within the context of an extremely low yield environment.
Fixed Income Perspective
Municipal Bonds: Limited Policy Support Creating Opportunity
Since their severe liquidity disruption in March, high-grade muni valuations have clawed their way back toward pre-pandemic levels.
Grading on a Steepening Curve
Intermediate and long US yields have risen significantly in recent weeks, primarily in response to monetary policy and better-than-expected jobs numbers, but remain well below pre-COVID highs.
The Fed’s Fixed Income Frenzy
Last week, the Federal Reserve (Fed) took additional steps to provide up to $2.3 trillion in loans to support the domestic economy through the economic shutdown and beyond.
The Fed Goes Open-Ended
The US Federal Reserve (Fed) announced new, extensive measures to support the US economy.
Municipal Bonds Not Immune to Pandemic
Over the past two weeks, tax-exempt Municipal bonds (Munis) have endured significant price weakness, with yields spiking more than 200 basis points (2%) across many parts of the AAA Muni curve.