Nick Venditti gets the last word in a Wall Street Journal front-page story about high-yield muni funds. Flows have been considerable into portfolios stacked with the risky securities.
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While the new tax code has been good for state and local governments, fund managers are finding that those same governments aren't issuing enough new debt to match the increase in demand.
Record-breaking flows to start the year have had a profound impact on the municipal market. Portfolio Manager Nick Venditti discusses the challenges and opportunities this has created for investors.
Nick Venditti is quoted in the Wall Street Journal discussing the interesting trend in 2018 that saw an uptick in some of the riskier sectors of the muni bond market. He said he had largely avoided lower-rated and riskier bonds. But at the end of 2018, as equity markets roiled and investors fled high-yield corporates, at least one deal looked attractive to him: a bond issuance linked to natural gas.
Nick Venditti tells Reuters that the recent Illinois and Chicago general obligation bond auctions might find buyers, but “over a longer period of time will likely prove unattractive for investors.”