2015 Municipal Bond Market Insights: Mid-Year Update - July 23, 2015

MacKay Shields

Description

INSIGHTS & PERSPECTIVES from MacKay Municipal Managers™ Portfolio in Action: We are overweight in certain areas of the tobacco sector and apply deep credit research when identifying valuable bonds at attractive prices. While we believe tobacco will be a top-performing sector in 2015, periodic spread widening in the tobacco sector may occur. Near-term stress in the high-yield municipal market may prompt some funds to reduce overweight positions in tobacco exposures, which could slow down price performance in the asset class. Mid-Year Status: Through 6/2015, the tobacco segment of the Barclays High Yield Municipal Bond Index has returned 1.63%. During the same period, the Barclays High Yield Municipal Bond Index returned -1.92%,and the Barclays Municipal Bond Index returned 0.11%. 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, and is not intended to constitute the giving of advice or the making of a recommendation. The investments or strategies presented are not appropriate for every investor and do not take into account the investment objectives or financial needs of particular investors.

An investor should review with its financial advisors the terms and conditions and risks involved with specific products or services and consider this information in the context of its personal risk tolerance and investment goals. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy, or investment product. Any forward looking statements speak only as of the date they are made, and MacKay Shields LLC assumes no duty and does not undertake to update forward looking statements.

Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. Historical evidence does not guarantee future results. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of MacKay Shields LLC. A Leader in Income-Oriented Investing 3 .