Driving Munis in 2013

Daily Stat | February 13, 2013 | Topics: Economic Outlook,  Fixed Income 

10: Consecutive quarters of improved state revenues

Tax policy and muted supply will likely be the biggest factors for the municipal marketplace this year. The direction of interest rates will also have some bearing, but we expect movements in munis will be less dramatic than the Treasury market and fixed income markets in general. Also, we anticipate that credit issues will continue to challenge the market, especially at the local level. State revenues have been up for 10 consecutive quarters now, showing fiscal improvement, but some locals are still grappling with financial stresses.

Source: BlackRock, January 2013

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