Municipal Market Offers Opportunity For Strong Returns

Thanks to the recent market dislocations, the complex municipal market offers attractive opportunities for strong returns, notes Guggenheim.

B. Scott Minerd and the team at Guggenheim point out volatility induced by headline events has created attractive investment opportunities in the municipal market.

Interestingly, the recently announced Volcker Rule too creates big opportunities in munis. As reported earlier, the Volcker Rule is not going to limit proprietary trading in municipal obligations.

Investors withdraw $50 billion from munis

Guggenheim analysts point out without conducting the requisite analysis to identify the truly at-risk issuers, it appears many investors have chosen to flee the municipal market. They point out that $50 billion in capital...