High-Yield Municipal Strategies & The Impact of Fed Rate Cuts w/ Daniel Close | Tao of Chao 23

The Tao of Chao Podcast

Daniel Close, Lead Portfolio Manager for High-Yield Municipal Strategies at Nuveen, joins host Philip Chao in this episode of Tao of Chao to explore the evolving landscape of high-yield municipals. They discuss the effects of the Fed's rate cuts, differences between municipal and treasury yield curves, and the future of fixed-income solutions. Daniel shares his expert insights on municipal market growth, supply-demand dynamics, and what makes today's high-yield municipal bonds different from the past. Don't miss this deep dive into the opportunities and risks of municipal investing!
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📊 Nuveen's Municipal Market Update
See Daniel's Slide Deck PDF here: https://philipchao.us/wp-content/uploads/0831-municipal-market-update-presentation.pdf
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👓 Learn more about our HOST
Philip Chao
Website: https://www.philipchao.us
Follow Philip on LinkedIn: https://www.linkedin.com/in/philipchao1/
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👓 Learn more about our GUEST
Daniel Close
Head of Municipals at Nuveen
Website: https://www.nuveen.com

👓 Learn more about our HOST
Philip Chao
Website: https://philipchao.us
Follow Philip on LinkedIn
DISCLOSURE: Views expressed in the Tao of Chao podcasts are individual opinions and they do not represent the employers of each guest or the firm with which each guest is associated. Our podcasts are for educational and informational purposes only and should not be deemed or viewed as investment advice or recommendations. Please consult your personal financial advisor, investment expert, or investment fiduciary before taking any actions about your plan and investments.

Bölümler

1. Cold Open (00:00:00)

2. Introducing Daniel Close, Head of Municipals at Nuveen (00:00:36)

3. Episode Topic: Municipal Bonds and Investments (00:01:55)

4. Current state of the Federal Reserve yield curve (00:02:13)

5. Municipal yield curve vs. US Treasuries yield curve (00:03:56)

6. Potential reasons yield curves are different (00:05:32)

7. Does the type of investor matter and impact the curve? (00:07:37)

8. Market supply and investment drivers (00:10:43)

9. Municipal investment differences post-GFC (00:12:16)

10. Impact of Post-Covid Stimulus in Economy (00:14:01)

11. Municipalities received unpresidented stimulus (00:16:05)

12. What municipalities did with stimulus money (00:18:21)

13. Municipalities invested wisely (for the most part) (00:19:15)

14. Impact of Work-From-Home (00:20:38)

15. Local tax collection has done well despite commercial real estate (00:21:53)

16. Local governments are quite resilient (00:23:48)

17. Not all municipal investment is the same (00:24:33)

18. Why active management in municipals matters (00:26:17)

19. Impact of immigration on municipal investing (00:27:27)

20. Impact of migration on Denver, Chicago, and New York City (00:29:06)

21. Can we forecast downgrades to these cities? (00:30:22)

22. Local energy production projects (00:31:07)

23. Trend of increased investment in power production and transmission (00:32:02)

24. Local, State, and Federal partnerships (00:34:13)

25. Issuance patterns increasing post-Covid (00:35:18)

26. High yield (00:36:49)

27. Municipals are attractive on an after tax basis (00:37:51)

28. How does amount of federal investement impact these investment opportunities? (00:39:46)

29. What could go wrong with high-yield? (00:41:43)

30. Wrapping up (00:44:37)

31. Legal Disclaimer (00:45:23)

32. EoS (00:45:53)