Hurricane Laura's Impact on the Muni Market

The video discusses the challenges faced by municipalities during risk events, especially in times of budget stress. It highlights the historical resilience of municipalities in recovering from crises like hurricanes, aided by FEMA. The discussion shifts to the impact of Jay Powell's announcement on municipal bonds, noting a shift in focus from inflation fighting. This could lead to a steepening yield curve, presenting opportunities for investors seeking higher yields.

What challenges do state and local governments face when managing crises?

How has the flexibility of municipalities been historically characterized during events like Hurricane Katrina and Hurricane Sandy?

What role does FEMA funding play in the recovery of municipalities after crises?

In what ways has the COVID pandemic created new stresses for municipalities?

How might changes in the Federal Reserve's focus on inflation impact the municipal market?