Barclays Recommends Callable Municipal Bonds as Defensive Play
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
People
Mikhail Foux (Barclays PLC)
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UUID: 7947283
(Bloomberg) -- Investors should consider callable municipal bonds due to their shorter effective duration relative to bullets, considering the Fed’s projected policy path, according to the Barclays municipal research team led by Mikhail Foux.
- Callable munis exhibit a slightly lower duration and higher yield when compared to bullet bonds with similar ratings
- Callables look attractive with segment’s YTW about 60 basis points higher than the non-callable sector and about 15 basis points higher than the overall muni index
- Many callable bonds "are not efficiently called" and remain outstanding past their non-call period ends
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
People
Mikhail Foux (Barclays PLC)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283