Municipal Fixed Income Perspectives — December 2023
December 11, 2023 — This presentation provides an overview of our market outlook and key themes, and it illustrates how Sage is positioned in the current environment.
Key Themes
- Seasonal Effects Remain Strong — Favorable technical factors provide a supportive market for municipals over the next several months.
- Credit Strength vs. Rate Risk — Municipal issuers are well positioned to weather any economic slowdown, but rate volatility will be elevated as Treasury yields react to rapidly changing market factors.
- “De Minimis” Tax Effects — The little-known pricing/tax risk regarding municipal bonds that trade below par and specifically affect sub-5% coupon bonds.
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