Aberdeen's Sickinger Sees 'Choppy' Muni Market This Year

The video discusses the World Bank's reduced global economic growth forecast and its impact on high-grade municipal bonds (munis). Munis are considered defensive assets with high credit quality, performing well in stagflation. The importance of analyzing individual credits and sectors is emphasized. Positive trends in transportation and liquidity are noted, with supply and demand dynamics affecting munis' performance. The future outlook highlights the significance of ESG in investments and the need to focus on shorter durations due to a flat yield curve.

What is the World Bank's revised forecast for global economic growth in 2022?

• 4.1%

• 2.9%

• 3.5%

• 3.0%

Why are municipal bonds considered a defensive asset class?

• They offer high returns.

• They are linked to corporate bonds.

• They are less affected by inflation.

• They have high default rates.

What is crucial when analyzing individual credits in the municipal bond market?

• Making broad generalizations

• Assessing the socioeconomic environment

• Focusing only on corporate bonds

• Ignoring financials

Which sector is showing positive fundamentals as part of the reopening trade?

• Technology

• Healthcare

• Transportation

• Retail

What is expected to give municipal bonds a boost during the summer months?

• Higher interest rates

• Increased supply

• Corporate bond performance

• Coupon payments