Latest news with #EricKazatsky
Yahoo
27-05-2025
- Business
- Yahoo
Long Munis Suffer on Tariff and Tax Fear as Short Bonds Gain
(Bloomberg) -- Muni investors seeking nearly instant gratification are being rewarded for their eagerness. UAE's AI University Aims to Become Stanford of the Gulf Pacific Coast Highway to Reopen Near Malibu After January Fires NY Wins Order Against US Funding Freeze in Congestion Fight State and local debt is often seen as a buy-and-hold investment, but in 2025 bonds maturing in under a year are performing the best of all muni segments, according to data compiled by Bloomberg. The municipal short-term index has jumped 1.3% — the biggest year-to-date gain since at least 2012 — while most other Bloomberg municipal indexes have posted losses. While yields for benchmark state and local debt maturing in 30 years have climbed almost 67 basis points this year, they've shrunk nearly 36 basis points for bonds due in three and six months. As municipal bond investors try to manage risks, such as President Donald Trump's fluctuating tariff policies and his tax bill that could increase federal debt, long bonds have sold off. 'The long end of the curve is most influenced by macro factors,' said Eric Kazatsky, Bloomberg Intelligence senior municipals strategist. 'On investors' minds are tariffs, taxes and inflation. The short end of the curve is the opposite. It's where you go to ride out volatility.' Doug Vissicchio, managing director and head of municipal trading and underwriting at UBS Group AG, also attributed the strength to fiscal uncertainty. 'As short-duration maturities continue to perform, investors are paid to stay short, particularly against this volatile macroeconomic and political backdrop,' he said. While UBS recommends investing in both ends of the municipal market, yields at or near 3% for short-term debt offer 'investors an attractive entry point,' Vissicchio said, adding that he has 'seen strong demand from our retail base to use short munis as a cash proxy.' Short-term yields may be moving lower as investors try to predict the Federal Reserve's next move. 'The short-term moves are in preparation for rate cuts this year,' said Eve Lando, a portfolio manager at Thornburg Investment Management. 'In part, piling into positions on the shorter end lessens the duration impact in case rates rise further on the longer end.' A steepening Treasury yield curve — due to inflation and debt concerns — has also impacted muni yields, said James Iselin, a managing director at Neuberger Berman. Plus, heavy state and local issuance has weighed on munis at a time when the market is seeing more individual buyers for maturities from one to 10 years compared to further out, he said. 'Hence the short end outperforming longer bonds,' Iselin said. (Updates with comment on impact of Federal Reserve rate policy in ninth and 10th paragraph.) Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Why Apple Still Hasn't Cracked AI Inside the First Stargate AI Data Center Millions of Americans Are Obsessed With This Japanese Barbecue Sauce How Coach Handbags Became a Gen Z Status Symbol ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-05-2025
- Business
- Yahoo
Short-Term Muni Gains Shield Investors From Long-Bond Struggles
(Bloomberg) -- Muni investors seeking nearly instant gratification are being rewarded for their eagerness. UAE's AI University Aims to Become Stanford of the Gulf Pacific Coast Highway to Reopen Near Malibu After January Fires NY Wins Order Against US Funding Freeze in Congestion Fight State and local debt is often seen as a buy-and-hold investment, but in 2025 bonds maturing in under a year are performing the best of all muni segments, according to data compiled by Bloomberg. The municipal short-term index has jumped 1.3% — the biggest year-to-date gain since at least 2012 — while most other Bloomberg municipal indexes have posted losses. While yields for benchmark state and local debt maturing in 30 years have climbed almost 67 basis points this year, they've shrunk nearly 36 basis points for bonds due in three and six months. As municipal bond investors try to manage risks, such as President Donald Trump's fluctuating tariff policies and his tax bill that could increase federal debt, long bonds have sold off. 'The long end of the curve is most influenced by macro factors,' said Eric Kazatsky, Bloomberg Intelligence senior municipals strategist. 'On investors' minds are tariffs, taxes and inflation. The short end of the curve is the opposite. It's where you go to ride out volatility.' Doug Vissicchio, managing director and head of municipal trading and underwriting at UBS Group AG, also attributed the strength to fiscal uncertainty. 'As short-duration maturities continue to perform, investors are paid to stay short, particularly against this volatile macroeconomic and political backdrop,' he said. While UBS recommends investing in both ends of the municipal market, yields at or near 3% for short-term debt offer 'investors an attractive entry point,' Vissicchio said, adding that he has 'seen strong demand from our retail base to use short munis as a cash proxy.' A steepening Treasury yield curve — due to inflation and debt concerns — has also impacted muni yields, said James Iselin, a managing director at Neuberger Berman. Plus, heavy state and local issuance has weighed on munis at a time when the market is seeing more individual buyers for maturities from one to 10 years compared to further out, he said. 'Hence the short end outperforming longer bonds,' Iselin said. Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Why Apple Still Hasn't Cracked AI Inside the First Stargate AI Data Center Millions of Americans Are Obsessed With This Japanese Barbecue Sauce How Coach Handbags Became a Gen Z Status Symbol ©2025 Bloomberg L.P.
Bloomberg
21-03-2025
- Business
- Bloomberg
Haskell Pitches Generational Opportunity in Munis: Masters of the Muniverse
This month we welcome Patrick Haskell, Managing Director, and head of the Municipal Bond Group at BlackRock, here to discuss why it is a 'generational opportunity to capture income' within the muni market. In this Masters of the Muniverse podcast, hosts and Bloomberg Intelligence analysts Eric Kazatsky and Karen Altamirano talk to Patrick about the opportunities in high yield, the rise of active ETFs and the outlook of munis amid the backdrop of tax policy uncertainties.
Bloomberg
14-02-2025
- Business
- Bloomberg
Sustainability Makes SMAs Tick: Masters of the Muniverse
Despite economic data once again signaling inflation is on the rise, the future of rate cuts becoming uncertain and an evolving fiscal policy landscape, there is much to be optimistic about within the muni market. On this month's Masters of the Muniverse podcast, hosts and Bloomberg Intelligence analysts Eric Kazatsky and Karen Altamirano talk to Tim Coffin, Director of Sustainability at Breckinridge Capital Advisors. We discuss the rise in separately managed accounts and how the demand for sustainable investing is unlikely to wane.
