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.

July 15, 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 continue to offer historically high levels of tax-free income.
• Long duration strategies 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 despite a cooling economy.

 

June 12, 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.

May 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.

April 12, 2024 — Sage answers the 4 big questions (outlook for macroeconomic growth, Fed policy, valuations, and investor sentiment) and illustrates our municipal fixed income positioning in the current environment.

Market Outlook

• Growth and inflation readings surprised to the upside on the quarter, which complicated the outlook for Fed policy. The most recent US labor market readings reinforced the notion that job growth continues to underpin the strong economic expansion and on balance, should result in more patience from the Fed in commencing rate cuts.
• Despite negative returns across most fixed income sectors, municipal indices outperformed many of their taxable peers. In general, municipal issuers remain strong from a credit perspective and are well positioned to manage the initial phases of any economic slowdown.
• Looking ahead, the second quarter is likely to be a better entry point for investors as tax-season selling pressure tends to coincide with a weaker technical environment until June.