Sean how are you thinking about Historically the way mewnis have reacted To not 25 but 50 basis point moves maybe One two three of them from the federal Reserve It's been a while since we've been in in This situation Taylor i think the market is well set up For what will happen at two o'clock Tomorrow it's 2 30 when chair powell Will lay out both the path and the Trajectory uh that the market will be Facing not only in the near term but Also in the june and july meetings to See if 50 basis points are ahead of us There as well How do munis react to that to the Tightening and then of course the Commentary around the balance sheet as You think about some of the relative Value in your world Yeah again i think the market has has Done a good job pricing in what are Foresees in the near future we've had a Rather tumultuous beginning to the year Not only in unis but just in fixed comp Fixed income in general with the Repricing of the market traditionally Muni's hold in rather well when rates Rise that wasn't the case early in this Year but we know why unions have gone From price for perfection to having a Little bit more room In them given the repricing so we're
Looking for munis to hold in well Uh posted the fed news tomorrow have you In your career seen this level of bond Volatility we talk about equity ball all The time the the gyrations we've had in Yields the relentless climb higher how Has that sort of impacted some of the Supply and the demand dynamics as well Yeah i have not seen something like this In my career but often where there's Volatility there's opportunity we talked About patients coming into 2022 and now The market has is reset in yield and in Price supply demand dynamics have Certainly changed from what we saw in 20 And 21 where demand significantly Outpaced supply now we're seeing supply Match demand and at periods of time uh You know demand needing uh to step up so I think we're in a different environment Today but again one where a little bit Of stability in the market will go a Long way from unis in the near term Where is the best opportunity then at This moment Currently the front end in the Intermediate of munis is looking quite Attractive by going out just five years On the curve one's able to pick up 80 Percent of the entire yield curve and You only take on a portion of duration It's been a long time since we've been Able to say that one year ago going out Five years on the curve you only picked
Up 23 of the entire curve so an Opportunity in the front end and in the Belly of the curve where there's good Liquidity does high yield credit is a Good place to pick up yield or is that Too much fomo Oh i don't think it's too much for Obviously high yield adds in a couple More Components such as longer duration and Obviously you're adding it a bit more Credit but you know if your view is that We've reached some stability in the Interest rate market and that rates have Room to rally back then high yield menus Will offer uh the duration and the Performance that you're looking for
