Q1 2021 Municipal Market Overview
Increased growth expectations, a successful roll-out of COVID-19 vaccines and new legislative initiatives pushed yields higher
during the quarter.
With the exception of one to three year maturities, high quality muni returns were negative across the curve.
Demand for municipals remained strong as fund flows were positive every week except for one at the end of February.
Demand for credit remained elevated as BBB and high yield municipals outperformed.