Title: Inflection Point: Pivot with Munis and High Yield
Accepted for 1 CFP®/IWI/CFA CE Credit.
Watch the replay of our latest webinar, where our portfolio managers addressed key topics for investors, including navigating a shifting interest rate environment and optimizing fixed income portfolios. We’ve provided an overview of the market, focusing on high yield and municipal bonds, and shared strategies for positioning investments effectively amid recent economic and monetary developments.
Key discussion points include
- Evaluation of current market conditions and trends
- Analysis of investment opportunities, spreads, and prospects
- Insights into credit quality and risks
- Active management advantages
- Strategic recommendations for positioning after the Fed’s rate cut and for the 2024 year-end
Featured Speakers:
- Sanjit (Sunny) Gill, CFA, Director and Portfolio Manager, MacKay Municipal Managers
- Nate Hudson, CFA, Managing Director and Portfolio Manager, High Yield Team, MacKay Shields
- Eric Snyder, CFA (Moderator), Director and Client Portfolio Manager, MacKay Municipal Managers
Accepted for one hour of CFP® CE Credit and IWI CE Credit for live webcast attendees. RIA Database is registered with the CFA Institute as a Sponsored Provider of Live CE Programs for CFA Charterholders.
Municipal fundamentals remain strong
Within the muni market, the amount of issuers that have been upgraded is almost double the amount of downgrades.
US High Yield has trended towards higher quality, public companies
Issuance has been skewed to secured, higher quality bonds, and large, public companies, tightening up trading spreads and helping liquidity.
Finding relative value across the curve
There is a potential opportunity on the longer end of the curve with higher yields, and mutual funds could be the vehicle of choice to capitalize.
Leverage and interest coverage are at a strong base
Interest coverage has stabilized over the last year with a decrease in profitability issues post-COVID for many companies.
Sponsors of this webcast may contact registrants.
Accepted for one hour of CFP®, CFA® & CIMA®, CIMC® or CPWA® CE Credit
All investments are subject to market risk, including possible loss of principal. Bonds are subject to interest-rate risk and can lose principal value when interest rates rise. Bonds are also subject to credit risk, in which the bond issuer may fail to pay interest and principal in a timely manner. Municipal bond risks include the ability of the issuer to repay the obligation, the relative lack of information about certain issuers, and the possibility of future tax and legislative changes, which could affect the market for and value of municipal securities. Investing in below investment grade securities may carry a greater risk of nonpayment of interest or principal than higher-rated securities.
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. ©2021, MacKay Shields LLC. All Rights Reserved.
Information included herein should not be considered predicative of future transactions or commitments made by MacKay Shields LLC nor as an indication of current or future profitability.
There is no assurance investment objectives will be met. Past performance is not indicative of future results.
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