Robert Amodeo and Robert DiMella Provide Insight Into the Muni Bond Market
For those interested in the investment opportunities available in the municipal bond market, a recent interview by Consuelo Mack at Wealthtrack is recommended viewing. Mack is quite adept at asking intelligent questions in her interviews.
The muni market experienced outflows for most of 2013 and opportunities arose for the thoughtful value investor; especially in lower rated high yield bonds. Prices are still well off their 52 week highs so opportunities may still exist.
Amodeo and Dimella, managers of successful muni bond funds (MacKay Municipal Managers and Western Asset Management), explain the important differences between revenue and general obligation bonds, along with the infancy of the municipal bond market funding much-needed infrastructure projects. They also touch on the challenges facing Puerto Rico and Detroit making good on their obligations.
Mack claims investors are better off with active management in this space, but that would be open to debate.