Municipals remain attractive as an asset class … In the near term, summer technicals have generated very visible net negative supply conditions, according to Jeff Lipton, managing director and head of municipal credit and market strategy and municipal capital markets at Oppenheimer & Co. … “If the outlook for the future tax bite stays muted for a while longer and we continue to receive heavier doses of hawkish Fed speak and higher inflation data points, yields may experience continued upward pressure,” he added. … Even without a rise in federal tax rates,
municipals should continue to offer “very desirable credit quality and diversification attributes,” which are expected to further entice foreign investment into the asset class, according to Lipton.
Source: Bond Buyer.
