Latest news with #MMIN
Yahoo
4 days ago
- Business
- Yahoo
Muni Yields Remain Attractive—For Now
Municipal bond exchange-traded funds continue to offer high yields for investors seeking to shelter some income from federal and, in some cases, state taxes. That's seen in the elevated municipal/Treasury ratio, known as the M/T ratio, said veteran muni bond manager John Loffredo, co-head of MacKay Municipal Managers, which issues the $835 million NYLI MacKay Municipal Intermediate ETF (MMIT) and $485 million NLYI MacKay Municipal Insured ETF (MMIN). The metric compares the yields of an index of AAA-rated municipal bonds to an equivalent yield on U.S. Treasury bonds. Based on current yields, the ratio ranges from about 75% on the 10-year muni bond to about 91% for 30-year muni bonds. It's about 10 basis points higher than usual. 'When you do your tax adjustment, at the highest tax rate of 37%, the yields that you're getting are extremely attractive, we believe,' Loffredo said. MMIT has a current tax-free yield of 3.7%, and MMIN's current yield is 4%, which equates to 5.9% and 6.3%, respectively, for an investor in the 37% tax bracket. Muni bond prices fell sharply in April as did most other asset classes and haven't fully recovered, keeping yields elevated. Loffredo said several muni-specific factors spurred selling: worries that Congress would strip munis of their tax-free status, the current administration's targeting of certain segments of the muni market, including private higher education and possible Medicaid reimbursement, which would impact non-profit healthcare providers, and investors selling muni bonds to find cash to pay their annual tax returns. He is positive on the outlook for munis as the ratings for many states are stable and munis are likely to be less volatile than other credits, such as corporate bonds or securitized vehicles, if the economy goes into a recession. Congress is still working out the tax bill, aiming to pass it by the July 4 holiday. Loffredo said he doesn't expect the muni tax status to change, and even if states need to take on Medicaid payments, it doesn't change his outlook. Many states have built up rainy-day funds and, if states ultimately must shoulder more Medicaid payments, they have time to figure out how to adjust, he said. States can't run budget deficits, and he expects states will either raise taxes or lower their expenses to keep those budgets balanced. Even states such as Illinois and New Jersey, which have large unfunded liabilities in their pension obligations, have positive operating balances. Both states have made 'significant progress' in staying on a timeline to get those funded again, he | © Copyright 2025 All rights reserved
Business Wire
06-05-2025
- Business
- Business Wire
New York Life Investments Launches NYLI MacKay Muni Short Duration ETF (MMSD)
NEW YORK--(BUSINESS WIRE)--New York Life Investments is announcing today the launch of its newest ETF, the NYLI MacKay Muni Short Duration ETF (NYSE: MMSD), an actively managed municipal bond ETF designed to provide attractive, tax-exempt income through a flexible short-duration strategy. Short-term municipal strategies already offer higher tax-equivalent income potential, and we believe they will outperform cash products this year. MMSD primarily invests in high quality, short-term municipal bonds with a target duration of 1-3 years. The Fund may allocate up to 20% of its assets to non-investment grade municipal securities, allowing for opportunistic positioning of the portfolio. The Fund is managed by the MacKay Municipal Managers team, led by Scott Sprauer, John Lawlor, Sanjit Gill and Vineeth Krishnakumar, a team focused on deep credit and market analysis with robust credit underwriting and thorough research experience. Sanjit Gill, Director at MacKay Shields, noted: 'In today's uncertain market environment, investors are looking for new ways to generate income while still appropriately managing risk. With normalizing interest rates, it's important to look outside of cash to pursue and capitalize on attractive income streams. Short-term municipal strategies already offer higher tax-equivalent income potential, and we believe they will outperform cash products this year.' The Fund expands the New York Life Investments suite of active muni-focused ETFs, which includes the NYLI MacKay Muni Insured ETF (MMIN), the NYLI MacKay Muni Intermediate ETF (MMIT), and the NYLI MacKay California Muni Intermediate ETF (MMCA). For more information on the fund and on New York Life Investments' full suite of ETF offerings, as well as insights and commentary on inflation and the current market environment, please visit our website here. To read our most recent MacKay Municipal Managers Outlook, visit our insights here. About New York Life Investments With over $754 billion in assets under management as of March 31, 2025, New York Life Investments, a Pensions & Investments' Top 30 Largest Money Manager*, is comprised of the affiliated global asset management businesses of its parent company, New York Life Insurance Company, and offers clients access to specialized, independent investment teams through its family of affiliated boutiques. New York Life Investments remains committed to clients through a combination of the diverse perspectives of its boutiques and a long-lasting focus on sustainable relationships. *New York Life Investment Management was ranked the 26 th largest institutional investment manager in Pensions & Investments ' Largest Money Managers 2024 published June 2024, based on worldwide institutional AUM as of 12/31/23. No direct or indirect compensation was paid for the creation and distribution of this ranking. About MacKay Municipal Managers™ MacKay Municipal Managers™ is a recognized leader in active municipal bond investing and is entrusted with $80 billion in assets under management, as of March 31, 2025. The team manages a suite of highly rated municipal bond solutions available in multiple vehicles. MacKay Municipal Managers™ is a fundamental relative-value bond manager that combines a top-down approach with bottom-up, credit research. Our investment philosophy is centered on the belief that strong long-term performance can be achieved with a relative value, research driven approach in a highly fragmented, inefficient municipal bond market. About MacKay Shields LLC MacKay Shields LLC (together with its subsidiaries, "MacKay")*, a New York Life Investments company, is a global asset management firm with $152 billion in assets under management** as of March 31, 2025. MacKay manages fixed income strategies for high-net worth individuals and institutional clients through separately managed accounts and collective investment vehicles including private funds, collective investment trusts, UCITS, ETFs, closed end funds and mutual funds. MacKay provides investors with specialty fixed income expertise across global fixed income markets including municipal bonds, high yield bonds, investment grade bonds, structured credit, and emerging markets debt. The MacKay Shields client experience provides investors direct access to senior investment professionals. For more information, please visit or follow us on Twitter or LinkedIn. * MacKay Shields is a wholly owned subsidiary of New York Life Investment Management Holdings LLC, which is wholly owned by New York Life Insurance Company. "New York Life Investments" is both a service mark, and the common trade name of certain investment advisers affiliated with New York Life Insurance Company. ** Assets under management (AUM) as of March 31, 2025 represents assets managed by MacKay Shields LLC and its subsidiaries but excludes certain accounts and other assets over which MacKay Shields continues to exercise discretionary authority to liquidate but which are no longer actively managed. For more insights from MacKay Municipal Managers™ and our New York Life Investments affiliates click here. About Risk: All Investments are subject to risk and will fluctuate in value. The Fund is a new fund. As a new fund, there can be no assurance that it will grow to or maintain an economically viable size, in which case it could ultimately liquidate. Municipal bond risks include the ability of the issuer to repay the obligation, the relative lack of information about certain issuers, and the possibility of future tax and legislative changes, which could affect the market for and value of municipal securities. Investing in below investment grade securities may carry a greater risk of nonpayment of interest or principal than higher-rated securities. The Fund is not a money market fund and does not attempt to maintain a stable NAV. The Fund's net asset value per share will fluctuate. There can be no guarantee that the Fund will achieve or maintain any particular level of yield. Bonds are subject to interest-rate risk and can lose principal value when interest rates rise. Bonds are also subject to credit risk, in which the bond issuer may fail to pay interest and principal in a timely manner. Consider the Funds' investment objectives, risks, charges and expenses carefully before investing. The prospectus and the statement of additional information include this and other relevant information about the Funds and are available by visiting or calling (888) 474-7725. Read the prospectus carefully before investing. Securities distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, Member FINRA/SIPC.
