Federal Stimulus Boosts Municipal Market
The municipal market outperformed most other segments of the bond market during the quarter as the anticipation and ultimate passage of the $1.9 trillion American Rescue Plan Act was viewed favorably by municipal bond investors. This federal stimulus plan is expected to add liquidity to state and local municipalities, and other areas of the municipal market most affected by the pandemic. Not only did the stimulus plan calm credit concerns, it also stimulated demand for tax-exempt income as individuals anticipated increases in federal tax rates.
The commentary is the opinion of the subadviser. This material has been prepared using sources of information generally believed to be reliable; however, its accuracy is not guaranteed. Opinions represented are subject to change and should not be considered investment advice or an offer of securities.
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Past performance is not indicative of future results.