The Bond Buyer – Quarter End Weakness Remains as Municipals Prepare for $11B of Supply

September 27, 2021
Original article by Christine Albano and Gary Siegel

Wesly Pate, portfolio manager at Income Research + Management, shared his thoughts on current trends in the buy-side municipal market with The Bond Buyer. Wesly suggests that the current supply-demand imbalance continues to compress yields, as demand for munis is still heavy despite the recent uptick in issuance. While there have been weeks this year where demand outpaced supply by a large margin, he explained, overall yield ratios are still being pushed lower. Wesly also believes that the market could readily absorb an increase in supply, and that he expects the compression trade across all fixed income markets to continue into the fourth quarter.

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