PMM News and Press, Putnam Managed Municipal Income Trust From 10/14/21

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...

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...

The US House Ways and Means Committee released their new 881-page tax proposal –there's some tricky stuff in it. If passed, the new top Federal rate in the US will be 46.4 percent, while the top capital gains tax rate appears it will be 31.8 percent from my calculations. NY...

While they may have become more common over the last 10 years, municipal defaults and bankruptcies still remain rare overall. The five-year all-rated cumulative default rate of municipal bonds throughout the study period (1970-2020) was unchanged at 0.08% and still remains very low. ...

The option-adjusted-spread ((OAS)) on the investment grade or high-grade corporate bond index, is presently about 95-100 bps better than the equivalent Treasury. As of last Friday, August 27th, 2021, the BBB OAS was yielding about 104 bp’s over equivalent Treasuries, which shou...

The muni bond market is complex, fragmented and in a constant state of change. It has more than one million individual bond issues outstanding, representing more than 50,000 distinct issuers. One of the biggest challenges facing investors today is finding the right bonds to buil...

The intensity of the income need only grows as investors move closer to - and enter - their retirement years. While diversified credit portfolios offer benefits, the potential drawdowns could be too much for some investors’ risk tolerances. For tax-sensitive investors, the ...

We think all muni managers should stand ready to provide specific examples of how they’ve improved client outcomes using built or bought technology. Finding bonds is only half the battle - they also have to be priced appropriately and fit each client’s specifications. ...

Rallying interest rates drove strong muni bond performance in July. Market dynamics remained seasonally favorable, with demand for munis broadly outpacing supply. A more defensive posture may be warranted ahead of elevated risks in the fall. For further details see: Muni...

During July, global consensus earnings estimates have re-accelerated to the upside, representing another bullish impulse in the tug of war between high valuations on the one hand and strong profits momentum on the other. Despite market worries of a loss of momentum in the near term, t...