In A Sea Of Negative Comments About The Muni Market, One Analyst Predicts A Comeback Year For 2013

Monday, February 25, 2013 09:02
edit
In A Sea Of Negative Comments About The Muni Market, One Analyst Predicts A Comeback Year For 2013

Tags: bonds | municipal bonds | new tax rules

MacKay Municipal Managers managing director and portfolio manager Bob DiMella predicts bonds will have a comeback year in 2013.
 
Saying the muni market was never as bad as predicted, he notes the steps local and state governments have taken to mend their fiscal problems.

This Website Is For Financial Professionals Only


 
He identified five themes for the 2013 muni market. One is that the credit market has bottomed out.
 
Municipal and Treasury yield ratios have reverted back to pre-crisis historical averages. The shift to a defensive interest rate posture will cause income to drive returns.
 
Advance refunding based on IRS rules will accelerate during 2013. And the healthcare and airport sectors will outperform.
 
Tax law changes will benefit the healthcare municipal market. And more people flew in 2012 than ever before, a trend that is expected to continue in 2013.

Comments (0)

Write comment

You must be logged in to post a comment. Please register if you do not have an account yet.

busy