We believe revenue bonds possess several advantages over general obligation bonds, such as strong credit fundamentals, greater insulation from political risk and historically attractive yields. We believe these characteristics, in combination with a focus on high-quality, stable issuers in economically strong services areas, represent bond income sources that are better insulated from economic slowdowns than tax-reliant general obligation (GO) bonds.
The fragmented nature of muni bonds and infrastructure projects financed, and a buyer base dominated by retail investors, provides a distinct opportunity to exploit market inefficiencies. Detailed credit analysis by a specialist team is required to identify and assess the unique risks and characteristics of the underlying infrastructure assets and how they are being managed.
In our view, the idiosyncracies of municipal bonds, such as hedging considerations and lower daily liquidity, requires demonstrated expertise. Our municipal bond team’s legacy dates back to 1933. Our large team of dedicated portfolio managers and specialist research analysts has successfully navigated multiple market and business cycles.
Highly experienced specialist munis team
Adding resilience via revenue bond focus
Exploiting opportunities in a fragmented market
