Sage Seizes Opportunities in the Muni Bond Market

During the month of March, solid AAA municipal credits were trading at distressed levels as mutual funds and other institutions were forced to liquidate to raise cash for withdrawals. The municipal to Treasury yield ratio (M/T ratio) diverged from its long-term average, reaching levels not seen since 2009. At its peak, AAA municipal bonds were trading at 2,100% or 21.0x the yield of comparable Treasuries. Prudent investors with cash and rational foresight were able to take advantage of once-in-a-decade, if not lifetime, opportunities to put money to work at deeply discounted levels.

  • DATE: June 10, 2020
  • TYPE: PDF

Featured Insights

ESG Solutions

Climate Risk & Municipal Credit Ratings

As climate-related events have increased in frequency and magnitude, they have moved to the forefront of ESG investors’ minds. How well companies and . . .

Learn more >

Fixed Income

Sage Fixed Income Perspectives May 2020

This presentation provides insight into our fixed income outlook and illustrates how Sage is positioned in the current environment.

Learn more >

ESG Solutions

ESG Investing: The Little Engine That Could

ESG began as a niche type of investing and has since captivated investors across the globe. Incorporating environmental, social, and governance factors has . . .

Learn more >