Product Categories: Municipal Fixed Income

Municipal Fixed Income Perspectives — February 2025

February 25, 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

  • Keep it simple –generate tax-exempt income with exceptional principal protection.
  • Longer duration strategies are poised for out-performance over the coming market cycle.
  • Security over sector selection as credit spreads remain fully valued.

Big Trouble in Little Oakland

January 27, 2025 — Chronic financial mismanagement, overly optimistic revenue assumptions, and poor governance have left Oakland spending far more than it collects in tax revenue. Now, the city is grappling with service cuts and may soon have to ask voters to approve tax increases to stabilize its finances.

Sage’s National Municipal Strategies Avoided California Wildfire Risk

January 23, 2025 — Without a doubt, the wildfires in Central California are one of the most tragic events to hit our nation. Since Sage primarily manages national municipal strategies, most clients in Sage strategies have little to no exposure to either the issuers affected or to any issuers within the State of California. This report addresses wildfire risk in California and the municipality that faces the highest potential for credit stress.

Municipal Fixed Income Perspectives — January 2025

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.

A Deep Dive on Prepaid Gas Bonds

December 19, 2024 — Prepaid gas bonds are the fastest growing sector in the Intermediate Municipal Bond Index. It continues to offer a significant yield pickup compared to index spreads without the credit risk that is synonymous with other higher beta sectors, such as healthcare, tobacco, and project finance.

Municipal Fixed Income Perspectives — December 2024

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.

Municipal Fixed Income Investment Strategy, October 2024

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.

Municipal Fixed Income Perspectives — October 2024

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.