FMB News and Press, First Trust Managed Municipal ETF From 04/25/22

We believe municipal bonds have reached compelling valuations versus U.S. Treasuries, creating a buying opportunity. Historically, 10-year municipal yields have averaged around 85% of comparable U.S. Treasuries, providing attractive after-tax return for investors above the 15% tax rat...

If China were to continue to pursue a Zero Covid policy amidst rising case counts, supply chains originating in Asia could get shut down again. On the food front, wheat is particularly vulnerable to a prolonged conflict, which has been reflected in the performance of wheat futures. ...

Though it has proven far from “transitory,” as the Federal Reserve labeled inflation last summer, we do believe there is anecdotal evidence that inflation may be peaking. Even though inflation was rising last summer, there was little response from the bond market, with y...

Negative total returns accelerated in March as interest rates moved sharply higher. Supply-and-demand dynamics turned less advantageous, and municipals underperformed. The reset in yields and valuations provides a favorable buying opportunity. For further details see: Mu...

Rating agencies reported that upgrades outpaced downgrades in 2021. The decline in the stock market produced concern that pension funding may decline, and the rise in inflation may reduce benefits. The shorter bonds can be sold to take advantage of large outflows from mutual funds...

Investors who look to bonds for safety and modest returns just received a brutal lesson in the perils of unexamined optimism. Basic investment doctrine holds that a trend of rising rates creates losses for existing bondholders. Surging inflation in Europe will soon be putting the ...

While the municipal bond market generally follows rate changes in the U.S. Treasury market, it does not move in lockstep. A contributing factor is that the tax exemption is valuable in all rate and tax environments to many types of investors. We believe it is likely that 2022 will...

The first quarter of 2022 is ending in the largest bond market sell-offs since 1994. The Federal Reserve has begun to tighten short-term interest rates with a hike in the Federal funds target rate from 0%–0.25% to 0.25%-0.5%. We are starting to see some signs that inflation...

Municipals posted negative performance in February amid heightened monetary policy and geopolitical uncertainty. Attractive valuations helped munis modestly outperform comparable U.S. Treasuries. The S&P Municipal Bond Index returned -0.51% for the month and -2.89% year-to-date. ...

Emerging Markets are outperforming the rest of the world, due in large part to windfall profits in the commodities-exporting countries of South America and the Middle East. If you want to follow the money, this is a good place to start. Money has been flowing out of tech, consumer dis...