Sage Advice Municipal Quarterly Market Review 3Q2020

The tone of the municipal market did a 180-degree turn in the third quarter, as yield and spread volatility trended lower and seasonal demand, once again, provided firm support. The ongoing and pressing economic concerns related to the Covid-19 shutdown remain ever present; however, investors’ desire for income generation seemingly outweighs any potential credit concerns. During these volatile and uncertain times, Sage remains focused on maximum risk-adjusted income, stable principle valuations, and a high degree of liquidity. Current market conditions warrant patience and prudence when deploying funds as valuations are not broadly reflective of the ongoing fiscal challenges.