A Bright Opportunity for Bonds – Taxable Municipals and Short Duration High Yield

After years of income limitations, investors now have the opportunity to access greater yields. However, in today’s bond market landscape, macroeconomic influences are directing investor sentiment and decisions. Factors like shifting-rate dynamics, cash on the sidelines, and the imminent possibility of a recession have prompted a reassessment of risk and investment strategies. Against this backdrop, taxable municipal and short duration high yield assets are standing out as attractive options.

Nate Hudson, CFA, Managing Director, at MacKay Shields High Yield Team, and Robert Burke, CFA, Managing Director, Portfolio Manager at MacKay Municipal Managers™, offer their perspectives on short duration high yield and taxable municipal asset classes, respectively. The speakers explore where opportunities lie, taking into account the reawakened dynamism of the bond market and the macroeconomic forces shaping it.

 

Featured Speakers:

  • Nate Hudson, CFA, Managing Director, MacKay Shields High Yield Team
  • Robert Burke, CFA, Managing Director, Portfolio Manager, MacKay Municipal Managers™
  • Michael LoGalbo, CFA, Multi-Asset Portfolio Strategist, New York Life Investments Multi-Asset Solutions Team

 

A Bright Opportunity for Bonds: Taxable Municipals Part 1

Diversify core bond exposure with taxable munis, which seek to offer attractive income and total return potential relative to investment-grade corporate bonds and other fixed-income sectors. 

A Bright Opportunity for Bonds: Short Duration High Yield

US high yield prices are currently below par, giving investors an opportunity to take advantage of positive optionality and potential downside risk mitigants. 

 

A Bright Opportunity for Bonds: Taxable Municipals Part 2

With volatile rates and spreads widening in current market environments, taxable munis tend to hold in better during these periods, relative to other segments within fixed income. 

For Financial Professionals Only.
All investments are subject to market risk, including possible loss of principal. Diversification cannot assure a profit or protect against loss in a declining market.
This material contains the opinions of the MacKay Municipal Managers™ and MacKay Shields High Yield Team of MacKay Shields LLC but not necessarily those of MacKay Shields LLC. The opinions expressed herein are subject to change without notice. This material is distributed for informational purposes only. Forecasts, estimates, and opinions contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. Any forward-looking statements speak only as of the date they are made, and MacKay Shields assumes no duty and does not undertake to update forward-looking statements. No part of this document may be reproduced in any form, or referred to in any other publication, without express written permission of MacKay Shields LLC. ©2023, MacKay Shields LLC. All Rights Reserved.
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