Insights

October brought a reversal of September losses, with the municipal market significantly outperforming US Treasuries. Aggregate fund flows were positive, however open-end mutual funds continued to experience outflows. While investors may change their preferred investment vehicle, they cannot change the immutable characteristics of the underlying bonds.

September was a brutal month for fixed income markets, particularly the municipal bond market. Yield movement was the most severe ever for 5 and 10-year rates and among the worst for longer tenors. For investors with a long-term investment horizon, an attractive entry point has been established.

Volatility persists, although month-to-month yield levels are relatively constant. Record new issue volume is digested with significant fund flows and reinvestment proceeds. We expect new issue volume to continue, will fund flows?

The Fed stands pat, and markets react as rates reach their highest levels since 2007. We examine the renewed volatility and look ahead to investor behavior and increasing new-issue volume in the coming months.

Another high profile municipal bond default in the news. We think this default is far more significant than prior headline defaults.... The implications will be felt across both the high yield and investment grade markets.

Volatility on steroids marked fixed income markets in May. Municipals outperformed, once again. And, we reflect on 16 years of managing non-rated municipal bond portfolios and our guiding principles.

Global instability persists but municipal markets bounce back. Brightline Trains are once again, headed off the tracks. We highlight how structural provisions can help investors avoid calamity...

Beware the Ides of March, once again. Performance suffers across most, if not all, asset classes including the municipal market. We explore the implications of broader market dislocation.

Private credit is back in the headlines, once again, raising concerns over the asset class. Meanwhile, the municipal market chugs along, solid demand readily absorbs heightened new issue volume while external forces drive performance.

Municipal markets started 2026 strong, supported by seasonal January demand, positive fund flows across IG and high yield, and modestly lower intermediate AAA muni yields. Market inefficiencies persist, particularly during periods of fund flow volatility, reinforcing the value of active, fundamentals-driven, non-rated municipal credit selection.

The municipal market enters 2026 with a much more subdued tone given the Big Beautiful Bill has been passed and enacted. Nevertheless, we anticipate another year of market volatility, record new issue supply and periodic dislocation.

The municipal market keeps rolling along, supply remains elevated and on a record pace, yet the market digests the supply. We dive into a common topic of discussion: Duration and why it should be less of a concern for non-rated municipal bond investors that those in other fixed income markets. We also discuss the life cycle of a LCP investment, Goodwill Industries of Southern Nevada.

High profile defaults in private credit market combined with significant bank exposure to these defaults raise investor concerns. We highlight many of the significant differences in the non-rated municipal market, and smile.

Since the Federal Reserve has restarted easing of monetary policy and the prospect of future rate cuts is high, we review the potential cost of complacency for investors choosing to remain in US T-Bills or other short term investments. The cost could be significant.

While new issue supply slowed, the market remains poised to set a record. Fund flows remain positive in August with a disproportionate share going to high yield funds. Finally, the Brightline Train in Florida struggles to meet projections, suffers multiple downgrades yet is able to refinance nearly $1 billion of debt subject to mandatory tender at a significant cost to the borrower.

Supply volume persists and the municipal market underperforms. But, the most interesting story is the precipitous fall of the Easterly High Income Municipal Bond Fund.

Municipal bond market shows resilience amid high supply. Opportunities abound despite summer seasonality and should expand later in Q3 and Q4.

LCPMX has reached a significant milestone, surpassing $50 million in assets under management. As of June 20, 2025, fund AUM totaled $60.8 million. Increased scale will provide benefits to all investors.

May felt reassuringly pedestrian compared to the near-historic volatility that occurred in April as a result of President Trump’s “Liberation Day” tariff announcement, which now feels like a lifetime ago.

"Liberation Day" provided investors liberation from calm and steady markets. Welcome to the new world of VOLATILITY.

Clients have been reaching out to us for our view on the incredible market volatility the municipal bond market has experienced since the “Liberation Day” tariff announcement on Wednesday, April 2nd. To say volatility has been extreme would be an understatement.

In like a lion and out like a lion, beware the Ides of March. The month of March was unkind to municipal bond investors as the market became untethered from all other markets.

Positive performance for both the investment grade and high yield municipal indices continued in February as they returned 1.00% and 1.26%, respectively. That is the second straight month of outperformance for high yield and 11 out of the last 14 months dating back to the beginning of 2024.

A proposal out of the Ways and Means Committee takes direct aim at tax-exemption for municipal bonds.

A proposal out of the Ways and Means Committee takes direct aim at tax-exemption for municipal bonds.