2022 municipal bond outlook | Columbia Threadneedle

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  • 01 mins 10 secs
We expect the credit fundamentals of the municipal market to be extremely positive and strong drivers of return for 2022, says Head of Municipal Bond Investments Catherine Stienstra.
Channel: Columbia Threadneedle Investments


Contact your Columbia Threadneedle Investments representative at 800.426.3750

www.columbiathreadneedle.com/us

As long as the economy continues to grow as forecasted and there's not a downturn, we expect the credit fundamentals of the municipal market to be extremely positive and strong drivers of return for 2022. Our outlook for the municipal market in 2022 is very constructive and positive. We are extremely positive on the credit market given the strength of what we saw during 2021. We saw excessive revenues into our market exceeding expectations. There was a lot of fiscal stimulus that was generated that helped propel the credit fundamentals and we feel that the income that is generated from the lower investment grade, as well as the high yield market will really drive the total returns for the rest of the year, more so than spread tightening, because we are at richer valuations and we think that income will really drive returns for our investors.

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