At the midpoint of 2025, municipal bond investors face a market marked by elevated yields, compelling valuations, and complex supply dynamics. Join MacKay Municipal Managers™ as we revisit our Top Five Insights for 2025 and assess where the market is heading for the second half of the year. This discussion will focus on the macro and credit themes shaping tax-exempt and taxable municipal strategies in the current environment.
Key discussion points will include:
- The value of traditional tax-exemption
- Navigating a supply-heavy market
- Credit selection in a normalizing fiscal environment
- High yield municipal bonds: evaluating risk and reward
- Beyond cash: reassessing the front end of the curve
Featured Speakers:
- David Dowden, Managing Director, Portfolio Manager, MacKay Municipal Managers™
- Eric Snyder, CFA, Director, Client Portfolio Manager, MacKay Municipal Managers™
The Old Normal is Back. Prepare for it with Meaningful Municipal Allocations.
MacKay Municipal Managers see a rare yield and price environment for munis, and we're encouraging investors to refocus on fixed income and municipals in particular.
Traditional Tax-Exemption Persists, and We Believe it’s as Attractive as Ever.
Although MacKay Municipal Managers expect an increase in the dialogue about this topic, they feel confident that tax exemption will remain in place.
Capitalizing on The Supply Wave will Require Seizing Initiative in Multiple Ways.
MacKay Municipal Managers believes the increased volume in the primary muni market can really provide a lot of opportunities to acquire bonds, not just with attractive yields, but also attractive structures and credit features.
The Front End of the Municipal Yield Curve Should Outperform Cash-Like Instruments.
MacKay Municipal Managers believes a slight extension on the muni curve offers investors an opportunity to lock in higher after-tax yields for the short run, potentially higher than what they could get in cash.
SPEAKERS
David Dowden
Managing Director, Portfolio Manager
Eric Snyder, CFA
Director and Client Portfolio Manager
Accepted for one hour of CFP®, CFA® & CIMA®, CIMC® or CPWA® CE Credit
All investments involve market risk, including loss of principal. Bonds are subject to interest-rate risk, credit risk, and potential loss of value if rates rise. Municipal bonds carry risks such as issuer repayment ability, limited information, and possible tax or legislative changes. Lower-rated securities may have higher risks of nonpayment.
This material reflects the opinions of MacKay Municipal Managers™ not necessarily MacKay Shields LLC. Opinions are subject to change without notice and are for informational purposes only. This is not investment advice or a recommendation. Information is believed to be reliable but not guaranteed. Forward-looking statements are as of their date and may not be updated. Reproduction requires written permission. ©2021, MacKay Shields LLC. Past performance is not indicative of future results, and there is no assurance that investment objectives will be met.
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Investment Management Holdings LLC, itself owned by New York Life Insurance Company. “New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. Securities are distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company.