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Trends with Benefits #76: Time for Munis? with Tom Doe

April 26, 2022

Listen Time 38:48 MIN

Ed speaks with Tom Doe, President and Managing Partner, Municipal Market Analytics, Inc. about his outlook for municipal markets.

I meet with Tom Doe, President and Managing Partner, Municipal Market Analytics, Inc. to discuss his outlook for municipal markets, and answer the question if now is the time to invest. We chat about the fund flows into muni bond ETFs and out of muni bond mutual funds. I ask Tom to jump into the headwinds he sees for munis in 2022, as interest rates continue to rise. We also discuss how inflation is impacting muni credit, and which sectors of the muni market may work best in an inflationary environment.

Show Notes:

1:47 Is this the time to be allocating to Munis

4:58 Muni bond funds: ETFs vs mutual funds

8:10 Municipal Markets Analytics Inc. Founding and clients

11:01 Biggest headwinds in municipal markets: Inflation Risk

16:42 What sectors perform better in inflationary environments

27:30 Increased property tax impact on munis

29:11 Tom’s long term trend view

31:29 Trend or Fad

Trend or Fad

Listen for Tom’s take on the metaverse, pension obligation bonds, remote virtual education, space tourism, and Austin Texas.

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This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities/financial instruments mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, or tax advice. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results, are valid as of the date of this communication and subject to change without notice. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck.

There are inherent risks with fixed income investing. These risks may include interest rate, call, credit, market, inflation, government policy, liquidity, or junk bond. When interest rates rise, bond prices fall. This risk is heightened with investments in longer duration fixed-income securities and during periods when prevailing interest rates are low or negative.

Municipal bonds may be less liquid than taxable bonds. A portion of the dividends you receive may be subject to the federal alternative minimum tax (AMT). There is no guarantee that the Fund's income will be exempt from federal, state or local income taxes, and changes in those tax rates or in alternative minimum tax rates or in the tax treatment of municipal bonds may make them less attractive as investments and cause them to lose value. Capital gains, if any, are subject to capital gains tax.

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