TAXF News and Press, American Century Diversified Municipal Bond From 11/09/22

Summary Rate hikes and tighter financial conditions drove fixed-income returns lower in 2022. The broad repricing of bonds and the higher starting yields we have now can help insulate investors from further losses. If we look at international bonds, this is probably the first ...

Summary Social Bonds represent the majority of ESG issuance. General purpose represents the largest use of proceeds amongst ESG issuance this quarter. Majority of ESG issuance in the third quarter of 2022 has used a verifier. During the third quarter, Municipal issua...

Summary Barclays Aggregate is down almost as much as the S&P 500 YTD. As of 10/31/22, the YTD return on high yield is far better than the return on corporate high-grade. There is relative value being created in the various bond market asset classes. Looking at th...

Summary The risk of recession will weigh on muni credit; however, we continue to be constructive on munis, given improved budgeting practices and accumulated reserves or rainy-day funds. The still-tight labor market should keep unemployment low, and massive amounts of federal fund...

Summary Persistent inflation spurred the US Federal Reserve to raise interest rates aggressively in the third quarter, with 0.75% hikes in both July and September. Earnings estimates for equities had continued to climb during the early part of the year and only started to moderate...

Summary The additional yield from a municipal bond is a multiple of what it was running prior to the pandemic. When we bring up a recession scenario, it’s important to underscore the role of municipal bonds, and bonds in general, in your asset allocation. Tax-loss harve...

Summary Negative total returns were driven by a sharp move higher in interest rates. Despite manageable issuance, elevated bid-wanted activity weighed on the market. We see several reasons to be more constructive on the asset class into year-end. Municipal market ins...

Summary Despite the recent interest rate volatility, municipals have managed to do better than taxable bonds. Municipals have the same default rate as AAA-rated corporates. Adjusting for duration, municipals’ taxable equivalent yield is still superior. Municipals&#x...

Summary The Federal Reserve continued to raise short-term rates in their battle to slow inflation in the third quarter. The end of the quarter saw Hurricane Ian deal a lethal blow to southwest Florida. The economic impact is severe and portends a big downshift in the economy o...

Summary Historic levels of volatility in the municipal (muni) bond market so far this year has caused investor concerns over market conditions. Technical conditions in the market have improved for tax-exempt investors as the year has progressed, yet outflows of funds from the sect...