Navigate the New Municipal World
Why Active Municipal Management Makes Sense
Today's municipal market, in many ways, is unchartered territory. Investors question whether municipalities are solvent and due to the demise of bond issuers, less than 10% of bonds come to the market today with insurance. In addition, today's falling interest rate environment has hid portfolio structural deficiencies. With yields at historic lows,it is possible that at some point rates will turn course and rise. This may make it challenging for traditional bond portfolios to offer consistently positive returns.
Active management has never made more sense. Partner with a manager that has the flexibility to decipher issues in uncertain markets.
Municipal bond laddering has historically been a popular strategy. An investor with a laddered strategy without the assistance of a professional money manager can typically expect:
- Regular coupon payments
- Execution through a retail bond desk; and
- Lack of professional, monitored exposure to credit risk and volatility due to changes in credit ratings
The BlackRock Difference
As a premier fixed income manager, BlackRock adds value by providing benefits that are typically not available to the average retail investor with an unmanaged laddered municipal portfolio.
Learn more about our Fixed Income Portfolio Offerings
- Trading bonds in anticipation of changes to underlying credit conditions can provide an opportunity for greater returns.
- Our 14 credit research analysts dig deep to understand the credit risks plaguing today's issuers.*
- The credit research team monitors current and potential municipal investments for your clients' accounts.
With over $98 billion in municipal assets under management and relationships with over 100 national and local dealers, BlackRock believes that it can achieve better execution than many individual investors and asset management firms.*
The municipal market is segmented and inefficient, making it difficult for retail investors to access a wide variety of municipal securities.
BlackRock's extensive national and local dealer relationships allow institutional access to inventory. Having a large network of dealers can help to reduce transaction costs.
Institutional Insight for the Individual Investor
Monitoring Risk Takes Time
Making informed investment decisions in today's complex, volatile markets requires significant resources and focus. Managing a large client base with highly customized mandates makes it challenging to service all of your clients and quantify their risks successfully.
As a result, many financial professionals today spend more time monitoring and measuring risks than they do servicing clients and gaining new business.
The BlackRock Bond Analyzer Can Help
- Powered by BlackRock Solutions®, which provides independent risk management and investment services for some of the world's largest institutions.
- See how a clients' bond portfolio stacks up against a BlackRock municipal portfolio
- Analyze overall credit quality, call features, and stress testing for changes in interest rates
- Option to include a Municipal Insight Report - straightforward recommendations on the credit risk and suitability of your client's municipal holdings.
* Data as of 9/30/11