PM Spotlight: Munis and the Magic of Stability
Nick Venditti, senior portfolio manager for the Municipal Fixed Income team, is not your average muni guy. Despite all the market noise, he’s a staunch believer in the power of municipal bonds to continue to add value to a diversified portfolio.
Key takeaways
- The outlook for munis appears bullish, especially for income. The market may also be poised for outsized returns, even if the yield curve doesn’t move lower anytime soon.
- The risk/return profile of municipal bonds may be worth doing cartwheels over, particularly for investors looking for diversification without sacrificing a lot of yield potential.
- Munis are less correlated with geopolitical and macroeconomic risks than the broader credit market, but it’s their stability that really adds value over time.
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