GSAM's Barber on Municipal Bond Rally

The video discusses the current state of the municipal bond market, highlighting 18 weeks of inflows and investor confidence. It explores valuations, credit fundamentals, and the impact of post-2008 changes. Concerns about state taxes and migration trends are addressed, with a focus on California. The discussion also covers bond structures and strategies, and the potential impact of trade wars on the market.

What has been the trend in municipal bond mutual fund inflows on a year-to-date basis?

• Declining inflows

• Stable inflows

• Approaching record inflows

• No inflows

What major change occurred in the municipal market post-2008?

• Increase in AAA ratings

• Loss of AAA status by insurance companies

• Stability in the investment grade space

• Decrease in credit spreads

What is a potential factor that could influence migration in California?

• Reduction in federal taxes

• Increase in property taxes

• Decrease in state income tax

• Normalization of the tech boom

Which type of bond is currently out of fashion according to the discussion?

• Zero coupon bonds

• Convertible bonds

• Floating rate bonds

• Fixed coupon bonds

What is the expected impact of tariffs and trade wars on the municipal market?

• Significant impact

• Complete market disruption

• Minimal impact

• No impact