Muni Insights #1 – Dedicated tax and GO debt outperforms

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[MUSIC PLAYING] So our first insight
for 2019 is going to be a little different
change from what you’ve seen in our portfolios for
the last several years– and in some cases,
what was actually directly in our insights. We had been overweight
revenue backed bonds over general obligation
bond in debt. And that is because the pension
in health care liabilities have been significant
enough to weigh on the uncertainty and the risk
in the municipal marketplace. And it’s worked rather well
over the last several years. In 2019, we’re shifting
that to a focus on more on dedicated revenues
and general obligation backed debt. Going after
taxed-backed securities, taking advantage of
the economic expansion, the increase in tax collections
at the state and local level will allow portfolios
in our opinion to perform better than sticking
with the revenue-backed structures that we
had been overweighting for the last several years. [MUSIC PLAYING]

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