The Bond Buyer: Taxables bolstered issuance to start the year

January 31, 2020
Original article by Aaron Weitzman

Wesly Pate, Senior Portfolio Manager at Income Research, shared his thoughts with The Bond Buyer, an industry publication for municipal bond buyers and sellers, on issuance in taxable municipal bonds.

At the time, Wesly noted that “fundamentals look appealing and technicals are still strong.” He did not foresee any issues with such high levels of supply being absorbed by the market. Assuming rates stayed low, which they have done, he foresaw the potential for up to $100 billion in taxable issuance.

Taxable municipal bonds are good for reducing volatility in a portfolio, without sacrificing too much in spread compensation compared to corporate credits.

Read full article here (paywalled).