MCEF News and Press, First Trust Municipal CEF Income Opportunity ETF From 02/17/22

In January 2022, volatility in the muni bond market picked up as yields saw their largest increase since the first quarter of 2021. Fundamentals in the municipal bond market today remain sound, while technicals — although slightly weaker as of late — look healthy to us. ...

Investors that hold bonds to maturity earn the yield at which they purchased the security, and at maturity, they get paid face value. The US government issues its own currency and can always pay for anything with the Fed’s newly created money. Fixed income investors have go...

It doesn’t matter what inflation measure you prefer — all are much higher than people have been used to over the past few years. We do expect the monthly inflation numbers to moderate over time. Another effect from the president’s bill being on hold is that th...

The Infrastructure Investment and Jobs Act is one of several positive drivers for municipal bonds in the new year. The most significant impact of the IIJA for municipal bond investors is likely to be incremental supply of muni bonds. Heading into 2022, the municipal market finds i...

Revised infrastructure bill and declining interest rates drove strong performance. Higher market supply was easily absorbed by robust demand. We expect the market to benefit from favorable seasonal trends in December and January. For further details see: Municipal Market...

Impact investing and municipal bond investing are a natural fit. Health is another area where municipal finance can bridge gaps. Global economies will need to galvanize more than US$100 trillion to address climate and social justice challenges in the years ahead. For further...

Taking an active approach in fixed income will be key to finding investment success in the upcoming year. In 2022, we expect the market narrative to transition to the traditional expansionary phase of the business cycle. We believe 2022 will be a strong year for “rising sta...

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...