https://www.wsj.com/finance/investing/the-8-8-trillion-cash-pile-that-has-stock-market-bulls-salivating-0a1b4a8c
The #MuniBond market, measured by the
Bloomberg Municipal Bond Index, is down 0.37% year to date through end of
February 2024. The curve remains inverted, and we have seen some new supply
indigestion with dealer balances growing. At $71.7 Billion, the YTD issuance is
37% higher than same time in 2023.
However, the forward-looking
calendar for new supply is robust and current demand, measured by investment
grade #MBMFF (MuniBond Mutual Fund Flows) is also strong
measured by 5 out of 8 weeks of inflows so far in 2024. In addition, the some of the new deals
coming to market have been 10-15x oversubscribed. Demand is strong but it is
not the insane 2021 strong. (average of $2 Billion a week inflows to #MBMF for
50 consecutive weeks )
There is a record $9 Trillion in money market funds and CDs.
If FOMO overpowers Fear, Complacency and #TbillnChill, we could see significant flows into #MuniBonds,
#Bonds, and #equities. Money Market yields fluctuate daily, so you might
want to get in front of this wave of capital, if you are considering
locking in juicy yields for a guaranteed amount of time.
#WatkinsonMuniBonds
#WatkinsonMunicipalBonds
#GetRealStayRich
#MunicipalBondSMA
#MuniBondSMA
#munis
#MuniBonds
#TBillnChill
#Fomo