Municipal Fixed Income Investment Strategy, August 2024

August 9, 2024 — Sage provides an outlook for the municipal market, including our sector views and positioning and the key themes we are following.

Market Outlook

  • Despite the recent rally, municipal bonds offer attractive relative yields and provide a defensive posture if we enter an economic slowdown.
  • Late growth cycle periods that shift suddenly to an economic slowdown favor longer duration strategies, which enable the most optimal curve allocation as a barbell strategy can be full implemented.
  • Both general obligation and revenue sectors are solid from a fundamental credit standpoint as revenues remain elevated even as the overall economy begins to cool.

  • DATE: August 9, 2024
  • TYPE: PDF
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