Municipal Bond Outlook: Recovering at Different Speeds

Link: https://www.pimco.com/en-us/insights/investment-strategies/featured-solutions/municipal-bond-outlook-recovering-at-different-speeds/

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In 2021, the composition of municipal supply could be a key swing factor for high quality muni performance. Last year, taxable muni supply hit an all-time record of $181 billion, due in no small part to the elimination of tax-exempt advance refundings in the 2017 Tax Cuts and Jobs Act (TCJA). The shrinking supply of tax exempts has provided a tailwind to muni market performance, particularly for high quality tax-exempt munis, which have enjoyed a full recovery to pre-pandemic levels.

Author(s): David Hammer

Publication Date: 19 February 2021

Publication Site: PIMCO