Municipal Update: Key Themes And Allocation Tilts

Feb. 20, 2025 10:34 PM ET, , , , , , 7 Comments
(10min)

Summary

  • We discuss key Muni themes, including tariffs, federal funding freeze, tax exemption, and more.
  • Muni valuations remain attractive, particularly the value of the tax exemption.
  • We highlight the four Muni buckets where we see value.
  • Systematic Income members get exclusive access to our real-world portfolio. See all our investments here »

Selective focus of dollar notes and red tag written with MUNICIPAL BONDS on white wooden background.

Mohamad Faizal Bin Ramli

Over the last few months, the municipal market has been inundated with new developments. In this article, we catch up on the key new themes such as the funding freeze, impact of tariffs on interest rates, the CA wildfires and more. We

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This article was written by

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ADS Analytics is a team of analysts with experience in research and trading departments at several industry-leading global investment banks. They focus on generating income ideas from a range of security types including: CEFs, ETFs and mutual funds, BDCs as well as individual preferred stocks and baby bonds.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of EIM, NIM, FEHAX, DTF, NZF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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