Longer Duration Driving Opportunity in Muni Bonds

Fed action and healthy demand are making longer duration municipal bonds attractive explains Loomis Sayles’ muni expert.

Watch Loomis Sayles’ Head of Municipal Portfolio Management & Portfolio Manager Dawn Mangerson explain the significance of the first-ever municipal yield curve inversion. She sums up what this occurrence, coupled with recent conditions, could signal for investors – staying short on the curve may mean missing out on longer, higher yields with attractive valuations later on.

All investing involves risk, including the risk of loss. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.

This material is provided for informational purposes only and show not be construed as investment advice. The analysis and opinion expressed represent the subjective views of Dawn Mangerson as of July 2023 and may change based on market and other conditions.

Fixed income securities may carry one or more of the following risks: credit, interest rate (as interest rates rise bond prices usually fall), inflation and liquidity.

Interest rate risk is a major risk to all bondholders. As rates rise, existing bonds that offer a lower rate of return decline in value because newly issued bonds that pay higher rates are more attractive to investors.

Diversification does not guarantee a profit or protect against a loss.

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