Record fund inflows led to unprecedented demand for Munis last year, keeping volatility at a minimum compared to the wild swings in the Treasury market. As inflows are expected to continue and supply remains light to start the year, we expect modest outperformance in the near term.


  • The Muni curve flattened in the fourth quarter with very low volatility compared U.S. Treasuries.
  • Flows into Muni Mutual Funds continued their record-breaking pace, leading to excess demand.
  • We examine a “fair value” metric for Munis.
  • Part 2 of our Muni Market Education Series: What’s the Credit Risk?

Daniel Urbanowicz
Senior Portfolio Manager
Municipal Fixed Income

Paul Clark, CFA
Senior Portfolio Manager
Municipal Fixed Income