High Yield Municipal Bond Outlook

February 2014
Uncertainty surrounding Federal Reserve interest rate policies and negative municipal headlines related to Detroit’s bankruptcy proceedings, Puerto Rico’s deteriorating fiscal situation, and Illinois’ pension reform issues made for a volatile 2013 in the retail driven municipal market. While volatility remains, this dislocation has led to a potential investment opportunity, particularly in high yield municipal credits. In this Rocaton Insights we review the characteristics of the municipal high yield market and the potential opportunities that exist.


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