Municipal Bond Reset: Volatility, Selectivity and the Active Advantage

PIMCO’s Head of Municipal Bonds Dave Hammer wants taxable investors to pay attention to muni market opportunities in today’s market. With rates at attractive levels, continuing strong credit quality, and seasonal factors affecting bond prices, he is excited about what’s ahead for investors. He discusses the broadening menu of municipal investing, which includes more and more privately-arranged debt in bespoke situations, as well as how thorough credit research and patient sector allocation drive results over the long term. In a world characterized by macro and geopolitical volatility, the muni markets offer a more local solution for investors looking to compound on a tax-efficient basis.”

Show notes:

(4:59) How recent events have impacted the muni market

(10:49) Why today is a good entry point

(16:27) Which sectors have become more or less attractive

(22:23) The divergence in outcomes between different projects

(25:49) Bank retrenchment and the muni market

(29:18) How the team stays ahead

(41:10) Where AI meets the muni market

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