High-Yield Munis Outperform Fixed Income in 2019

The video discusses the recent outperformance of municipal bonds (Munis) compared to other bond sectors, driven by factors such as falling interest rates and high credit quality. The Muni to Treasury ratio is at a record low, with retail investors playing a significant role in maintaining trading levels. The demand for Munis has been strong, with significant inflows from retail investors, influenced by post-tax reform perspectives.

What has been a key factor in the outperformance of municipal bonds since November 2018?

• Increase in interest rates

• Decrease in interest rates

• High volatility in the market

• Low credit quality of Munis

What is the current narrative about the Muni to treasury ratio?

• Treasuries are outperforming Munis

• Munis are trading rich relative to treasuries

• Munis are undervalued compared to treasuries

• Munis have high volatility compared to treasuries

Who is primarily driving the current trading levels of Munis?

• Institutional investors

• Government agencies

• Foreign investors

• Retail investors

What has been the trend in retail investment in Munis this year?

• Retail investment has decreased

• Retail investment has remained stable

• Retail investment has increased significantly

• Retail investment has been volatile

What is one reason for the increased demand for Munis post-tax reform?

• Higher interest rates

• Changes in how retailers view the asset class

• Decreased market volatility

• Increased government subsidies