Source: MacKay Municipal Managers, as of June 2023. Chart shows change in MacKay Municipal recommended high yield allocation with change in high yield municipal bond spread. Please see definitions below. Returns represent past performance which is no guarantee of future results. An investment cannot be made directly into an index.
% HY Allocation – Percentage allocation of a portfolio towards high-yield bonds.
High yield municipal bond spread – Difference in yield between high-yield municipal bonds and comparable US Treasury securities. It is a measure of the credit risk premium for investing in high-yield municipal bonds.