January 13, 2025 — This presentation provides an overview of our municipal market outlook and key themes, and it illustrates how Sage is positioned in the current environment.

Key Themes

• Municipal income generation begins 2025 at near decade highs.
• Consider locking in higher rates by adding duration in the steepest part of the yield curve.
• Municipal credit metrics provide a solid foundation to overall asset allocation.

December 5, 2024 — This presentation provides an overview of our municipal market outlook and key themes, and it illustrates how Sage is positioned in the current environment.

Key Themes

• Municipal yields have most likely peaked and should grind tighter over 2025.
• The time to extend duration is now, with longer dated strategies offering maximal risk-adjusted returns.
• Investors can benefit from an early reallocation to municipal bonds to avoid the seasonal rush to market that occurs every January.

October 14, 2024 — Sage provides an outlook for the municipal market, including our sector views and positioning and the key themes we are following.

Key Themes

• The municipal market continues to be characterized by broad-based credit strength, positive direct and indirect fund flows, and an attractive after-tax yield environment.
• Several seasonal factors will define the fourth quarter, contributing to varying levels of liquidity and the potential for short-term volatility swings.
• Sage has a slightly long duration tilt for all our investment strategies, and if rates decline, Sage’s barbell allocation should mitigate the challenge of an inverted 2s5s yield curve while providing a better return profile.

October 8, 2024 — This presentation provides an overview of our municipal market outlook and key themes, and it illustrates how Sage is positioned in the current environment.

Key Themes

• Municipal bonds continue to offer attractive after-tax income with limited risk.
• Longer dated strategies offer the best option to maximize returns and minimize risk — but not for long.
• Municipal spreads are fully valued but still offer acceptable income carry.

September 11, 2024 — This presentation provides an overview of our municipal market outlook and key themes, and it illustrates how Sage is positioned in the current environment.

Key Takeaways

• Municipal bonds remain well positioned for relative outperformance
• Longer dated strategies offer the best option to maximize returns and minimize risk
• Municipal bonds remain strong and resilient, despite California’s fiscal issues

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.

July 17, 2024 — Sage provides an outlook for the municipal market in the second half of 2024, including our sector views and positioning and the key themes we are following.

Market Outlook

• Municipals held up well in the second quarter versus comparable Treasuries, which has kept municipal/Treasury ratios on the richer side, and credit risk was well contained for most issuers.
• Strong summer seasonals helped to drive both yields and spreads lower during June, which pushed year-to-date returns for the broad municipal market index back to a more palatable -0.40%. The municipal curve environment also began to normalize.
• Despite some challenges we see for the second half, municipal issuers are expected to remain financially stable, and the market outlook remains cautiously optimistic.