The lack of progress on President Trump’s major agenda items has, so far, proven to be beneficial to the municipal market. A lack of borrowing to fund infrastructure and fading concerns over an overhaul of healthcare and taxes has led to the outperformance of municipals. At this point, a significant change in the political environment in Washington seems unlikely and should continue to provide a favorable backdrop for the municipal market in the second half of 2017. Yet the status quo may not be good for the market long-term.
In this commentary, Baird Advisors Senior Portfolio Manager Duane McAllister talks about how the municipal market has benefitted after the election of President Trump.
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