Reorg – Municipal Market 2022 Outlook: Fed Rate Hikes Wonʼt Bring Repeat of 2021 but Munis Can Still Outperform Other Fixed Income Classes

January 19, 2022
Original article by Anastasia Bergeron

Wesly Pate, Portfolio Manager at Income Research + Management, spoke with Reorg about his outlook for municipal bonds in 2022. Wesly feels that the market could see a longer outflow cycle in 2022, as munis started the year below their long-term relative value averages. He also shared that he expects munis to outperform as the Federal Reserve hikes interest rates. Munis have historically outperformed in a rising-rate environment because the growing value of the tax exemptions mitigates downward price pressure, Wesly explained.

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