Sage Advice Municipal Quarterly Market Review 2Q2018

Notwithstanding the ongoing negative pressures weighing on marginal municipal issuers, we believe that high-quality municipal credits will continue to pay debt service by making the appropriate adjustments to their respective budgets. Going into the back half of 2018, Sage will continue to be opportunistic in adjusting duration and curve positioning as yield levels reach the upper and lower boundaries of the current trading range. Our portfolio sector allocations will remain focused on the high-quality credit sectors, including both general obligation and essential service revenue bonds rated A2 and higher.