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The municipal bond market enters 2025 with strong but ebbing credit fundamentals, the potential for rising Municipal/Treasury ratios driven by increased issuance and weaker demand due to policy uncertainty, and tight credit spreads.
United Nations conferences conducted in 2024 continued to focus nations on the key sustainability risks presented by climate change and degradation of biodiversity around the world.
High quality investment grade (IG) bonds have traditionally played an important role in well-diversified portfolios of investors seeking stable income, diversification, and capital preservation.
Traditionally, investors have allocated to high-quality investment grade bonds with a goal of earning predictable income, diversifying their overall portfolio risk, and preserving capital.
As economic conditions shift and monetary policies change, we are seeing more divergence amongst issuers and potential opportunities to add value through credit selection.