The current environment features high uncertainty for fixed income markets, including debate over the direction of interest rates, inflation, and the economy. For municipal bond investors, an opportunistic approach will be essential for navigating the challenges ahead.

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Opportunistic Weightings Across Investment Grade and High Yield
Objective: Income Preservation (moderate) - High Yield % Allocation

        

High Conviction Strategic Allocation

Source: MacKay Municipal Managers, as of 2/1/24. 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.

        

Consider MainStay MacKay Strategic Municipal Allocation Fund

Flexible mandate
Investment grade strategy with a flexible mandate to opportunistically invest up to 35% in high yield securities.

Relative value strategy
The team relies on credit analysis, yield curve positioning, and sector rotation to uncover the most compelling opportunities.

Tenured team
The co-heads have worked together since 1993 and leverage their long-term relationships with municipal dealers to help drive success.

        

Definitions:
% 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.