MacKay Municipal Managers™, the municipal bond team of fixed income and equity management firm MacKay Shields, LLC, recently published their top five insights for the municipal bond market in 2019.  

John Loffredo and Robert DiMella, co-heads of MacKay Municipal Managers, commented on the firm’s 2019 outlook: “This year will have greater uncertainty so active management is critical. Whether the economy is in a late cycle or taking a pause, municipal investors will be balancing their concerns about risk against their need for income. Taking a tactical approach in 2019 will best ensure progress for our clients’ investment objectives.”

The top five insights include:

  1. Dedicated tax and general obligation debt outperforms as tax revenue streams grow.
  2. Municipal issuance exceeds market expectations.
  3. Restructuring of Puerto Rico debt provides opportunity to increase allocation to high yield municipal bonds.
  4. Municipal financing with embedded real estate risk underperforms.
  5. Tactical portfolio positioning drives performance. 

To view the full outlook, please click here.  

For additional insights and information from MacKay Municipal Managers, visit

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Media contact
Allison Scott
New York Life Insurance Company
(212) 576-4517

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This material contains the opinions of the MacKay Municipal Managers™ team of MacKay Shields LLC but not necessarily those of MacKay Shields LLC. The opinions expressed herein are subject to change without notice. This material is distributed for informational purposes only. Forecasts, estimates, and opinions contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. Any forward-looking statements speak only as of the date they are made and MacKay Shields assumes no duty and does not undertake to update forward-looking statements. No part of this document may be reproduced in any form, or referred to in any other publication, without express written permission of MacKay Shields LLC. ©2019, MacKay Shields LLC.

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