“Given the recent market volatility, it’s imperative that you stress test potential purchases under various rate scenarios,” says Jonathan Law at Advisors Asset Management.
Analysts say states' and cities' unfunded infrastructure should be viewed as a liability, along with debt, pensions and other post-employment benefits.
Although market conditions are not pristine, with rising yields and little primary action, market participants expressed reason to believe the first week of February will be a positive one.
The weekly average yield to maturity of The Bond Buyer Municipal Bond Index, which is based on 40 long-term bond prices, rose to 3.94% from 3.88% last week.
It will take some time to see how both tax reform and infrastructure makes an impression on the muni market, said panelists at The Bond Buyer's National Outlook 2018 Conference.
In the week ended Jan. 25, the weekly average yield to maturity of the Bond Buyer Municipal Bond Index rose to 3.88% from 3.86% the previous week. The BB40 Index is based on the price of 40 long-term bonds.
