BlackRock's Peter Hayes Is a Little Bit Cautious on High-Yield

The video discusses the performance of municipal bonds, particularly focusing on the first quarter of 1996 and 2017. It highlights the impact of tax reform on bond performance and the importance of high yield bonds in a municipal portfolio. The discussion also covers the valuation of municipals relative to corporates post-tax reform, emphasizing the market's implied rate and the influence of corporate tax rates on investment decisions.

What factors contribute to the positive outlook for municipal bonds as discussed in the text?

How has the performance of high yield municipal bonds compared to investment grade bonds over the last 14 years?

What are the potential risks associated with high yield municipal bonds as highlighted in the discussion?

Discuss the significance of the implied valuation of municipals relative to corporates as mentioned in the text.

What implications does the tax reform have on the value of municipal bonds for property and casualty companies?