Hunting for Value in the Municipal Bond Market
Recently, one of our own published a book entitled Hunting for Value in the Municipal Bond Market. The author, Jon Morgan, who heads up our bond department at Crawford, decided to put into print his experiences in investing in the municipal bond market over the past 35 years. We congratulate Jon on this achievement and appreciate the contributions he has made to our firm and our clients. If you would like a complimentary copy of Jon Morgan’s book please fill out the form below.
Tax-exempt municipal bonds would appear to be a relatively straightforward investment. However, due to the vast number of municipal bond issuers and the fragmented nature of the market, a deep understanding of the nuances of this segment of the capital markets continues to play a vital role in the process of identifying bonds to build out portfolios. The municipal bond market is one of the last true over the counter securities markets and does not lend itself well to electronic platforms or exchanges. Relationships within the industry are crucial in order to navigate through the process of constructing a municipal bond portfolio. To be successful, the investor needs a working knowledge of how the market functions and what avenues exist to access the asset class. Many investors consider the municipal market an attractive way to earn tax-exempt income while preserving capital. The author believes this can be accomplished utilizing high quality securities from many different sectors of the municipal market. Certain sectors and segments have a common thread in that the yields available will typically be higher than the market in general, and in excess of similarly rated securities. The concept of a dual mandate of minimizing security risk while maximizing income is explored in great detail. Actual case studies are used extensively to illustrate the benefits of this style of investing. The author has over 30 years of experience investing in municipal bonds. This book is not written as an academic text. It is written from the perspective of a market participant seeking value in the municipal bond marketplace.