The commentary reviews the previous quarter, and discusses our outlook for the months ahead.
- The US economy generated slow and steady growth throughout 2015. Although low by historical domestic standards, this consistent performance was markedly strong relative to the international developed world.
- Positive economic growth and good job creation numbers helped bolster the credit quality of municipal bonds, while demand and supply dynamics remained supportive, improving total return.
- Puerto Rico, after defaulting on some of its appropriation debt in August, is still struggling to avoid default on its general obligation bonds.
- A lack of clear economic portents has contributed to the increased volatility in stock and bond markets ending 2015 and leading into the new year, with steady but lackluster economic growth domestically amid geopolitical turmoil abroad. We believe high-quality municipal bonds continue to offer stability in an uncertain market environment.