Muni Selloff Is an Opportunity: Appleton's Pearce Fitts

The video discusses the decline in municipal debt sales due to high interest rates and market volatility. Whitney Pierce Fitz from Appleton Partners explains the lack of bond issuance, influenced by COVID funds and market uncertainty. The rise of private placements is noted, appealing to investors seeking control over deal terms. Despite a recent market sell-off, current conditions are seen as a buying opportunity. The video also analyzes muni to treasury ratios, highlighting their relative value and potential benefits during a recession.

What are some reasons for the decline in municipal debt issuance this year?

• Increased demand for municipal bonds

• Stable economic conditions

• Decrease in COVID funds

• High interest rates and economic volatility

How has the method of municipal bond issuance changed recently?

• More government intervention

• Shift towards private placements

• Increased use of public auctions

• Decrease in private placements

What is the current investment strategy suggested in the municipal market?

• Sell off existing bonds

• Add duration to investments

• Focus on short-term bonds

• Avoid buying due to high yields

What is the significance of the muni-to-treasury ratio in the current market?

• It shows the relative richness of munis

• It indicates a decrease in bond value

• It suggests a decline in treasury yields

• It reflects the stability of the market

Why might investors want to lock in higher yields now?

• To prepare for a potential recession

• To avoid future interest rate cuts

• To benefit from decreasing bond prices

• To capitalize on short-term market trends