How the Fed, Negative Rates Impact the Municipal Bond Market

The video discusses the Fed's limited influence on interest rates and the impact of negative rates overseas on US Treasurys and municipal bonds. It highlights the supply and demand dynamics in the bond market, noting decreased supply and increased demand. The video also explores investment strategies, comparing high yield and investment grade bonds, and the role of insurance in enhancing portfolio value.

What is one of the catalysts mentioned for keeping interest rates low in 2020?

• Federal Reserve's influence

• Increased government spending

• Rising inflation

• Negative rates overseas

How does the municipal market compare to negative debt overseas?

• It offers lower yields

• It is a less attractive option

• It is unaffected by overseas rates

• It offers higher yields

What trend is observed in the bond market supply for the year discussed?

• Unpredictable supply

• Stable supply

• Increase in supply

• Decrease in supply

What is a challenge faced by portfolio managers due to market dynamics?

• Excessive bond supply

• High interest rates

• Lack of investor interest

• Chasing yields lower

What is a benefit of investing in Triple B credits with insurance?

• Increased volatility

• Enhanced portfolio value

• Higher risk

• Lower yield