BlackRock Sees Munis as 'Bright Spot' in Fixed Income

The video discusses the relative and absolute value of municipal bonds within the fixed income space, highlighting their performance and defensive nature. Despite a decrease in yields, munis have shown positive returns compared to other asset classes. The discussion also covers the supply and demand dynamics, particularly the January effect, which influences returns. The concept of net negative issuance is explained, emphasizing its positive technical impact on the market.

Discuss the implications of supply and demand dynamics on municipal bond returns.

What does a net negative issuance year imply for the municipal bond market?