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Virtus Viewpoints - Q2 Seix Investment Grade Taxable and Tax-Exempt Fixed Income

Volatility, Liquidity, Stability, Uncertainty, and Quality

  • As pandemic mitigation swept the country, fiscal stimulus and liquidity provided some welcome relief in the deepest contraction since the Great Depression.
  • Yet, the confluence of very good performance by risk assets (thanks to the Federal Reserve) and haven assets signaled ongoing deep-seated problems with the economy.
  • After a very volatile March and April, municipal bond investors resumed reaching for yield despite constrained supply and looming credit issues.
  • We maintain our focus on quality and longer maturities as states and municipalities hardest hit by COVID-19 mitigation face unprecedented challenges. We expect major fiscal pressures will lead to more downgrades than upgrades.

z - Cover Image: Seix Market Review and Outlook - Investment Grade

Investment Partner

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.

All investments carry a certain degree of risk, including possible loss of principal.

Past performance is not indicative of future results.

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