FMB News and Press, First Trust Managed Municipal ETF From 11/16/21

Interest rate volatility prompted another month of negative total returns. Below-average issuance was counterbalanced by a slowdown in demand. November could provide opportunities ahead of seasonal strength in December and January. For further details see: Muni Seasonal ...

Truly active managers shine in challenging investment environments, especially when they are given a flexible mandate. With tax-loss harvesting, active investors can deliberately sell at a loss to offset taxes on gains elsewhere in a portfolio. Rising rates may be less worrisome t...

In 2021, inflows to municipal bond funds have been strong (demand has been exceptionally high), outstripping supply. By design, high yield municipal bond funds carry larger allocations to credit risk relative to investment-grade municipal bond funds. During periods of limited supp...

The strong economic and market trends of the first half of 2021 wavered during the third quarter. The coronavirus delta variant caught up with the US at the height of the summer, just as vaccinations slowed and concerns grew that inflation might flare and persist. Even so, equity mark...

The increase in Delta infections put a damper on the return to normalcy in the third quarter. Strong revenue growth and stimulus funds resulted in performance by states in excess of 2021 budget expectations. While ratings changes had been mostly positive for many years, the pandem...

Rising interest rates drove negative total returns. Supply and demand dynamics turned less seasonally favorable and acted as a headwind. More attractive valuations could provide near-term opportunity. For further details see: Munis Remained Tethered To Rates In September...

Bond yields have moved up somewhat this month but are still a long way from trailing inflation. For most of 2020, beyond the peak of the pandemic, tax-free bond yields were close to taxable bond levels. Two Federal Reserve Bank Presidents, Eric Rosengren of the Boston Federal Rese...

The Treasury curve continued to flatten during the third quarter of 2021, with short-term Treasury yields rising while longer Treasury yields declined. As the Treasury curve flattened, we saw minimal movement in the already tight spreads of corporates and taxable municipals. At th...

A fixed income investment can serve as diversifier against equities, a source of income, or even protection against inflation when using TIPS. As interest rates and inflation expectations evolve, a tactical rules-based approach to portfolio optimization can help provide investors with...

Modestly negative performance in August capped a robust summer seasonal period. Issuance exceeded expectations, resulting in less of a supply/demand imbalance than is typical. We maintain a defensive posture into the historically less favorable month of September. For furthe...