Muni Yields Getting Interesting, Neuberger's Iselin Says

The video discusses the recent volatility in the fixed income market, driven by unexpected CPI results and rising yields. Jamie Island from Neuberger Berman explains the market's reaction and highlights investment opportunities in short to intermediate municipal bonds. The discussion covers strategies for maintaining investment in a volatile market, alternatives to equities, and guidance for retail investors. The focus is on asset allocation, tax efficiency, and the importance of staying invested despite market fluctuations.

What was the market's reaction to the unexpected CPI print?

• Yields decreased significantly.

• Yields remained stable.

• Yields increased sharply.

• There was no change in yields.

Why might investors focus on short to intermediate municipal bonds during volatile times?

• They have longer durations.

• They provide stability and reinvestment opportunities.

• They are less affected by interest rate changes.

• They offer higher risk.

What is a key consideration when comparing municipal bonds to treasuries?

• The bond's maturity date.

• The color of the bond certificates.

• The tax equivalent yield.

• The issuer's location.

How should retail investors respond to massive outflows from bond funds?

• Stay invested for better days ahead.

• Switch to equity funds immediately.

• Ignore the market entirely.

• Panic and sell all their holdings.

What is the current state of credit quality for municipal bonds?

• It is at an all-time low.

• It is deteriorating rapidly.

• It is in a very good place.

• It is unpredictable.