PM Spotlight: Munis and the Magic of Stability
Nick Venditti, senior portfolio manager for the Municipal Fixed Income team, is not your average muni guy. Despite all the market noise, he’s a staunch believer in the power of municipal bonds to continue to add value to a diversified portfolio.
Key takeaways
- The outlook for munis appears bullish, especially for income. The market may also be poised for outsized returns, even if the yield curve doesn’t move lower anytime soon.
- The risk/return profile of municipal bonds may be worth doing cartwheels over, particularly for investors looking for diversification without sacrificing a lot of yield potential.
- Munis are less correlated with geopolitical and macroeconomic risks than the broader credit market, but it’s their stability that really adds value over time.
Related insights
Janet Rilling and Hannah Rosencrantz give a Q3 fixed income market update—discussing strong bond performance, potential risks in credit compensation, and strategies for building resilient portfolios in Q4.
Fixed income benchmark construction has two fundamental flaws. First, exposures prioritize the needs of borrowers rather than investors. Second, this tends to expose investors to the biggest risks at the worst times.
Two of Allspring’s senior portfolio managers and high yield specialists, Chris Lee and Mike Schueller, sit down with Daniel Sarnowski to discuss recent volatility and why focusing on shorter-duration, higher-quality high yield assets could be the answer in uncertain markets.
Nick Venditti, Allspring’s head of Municipal Fixed Income, explains the impact of the recently passed One, Big, Beautiful Bill on our SpringTalk Muni Moments. And the good news for muni investors? It’s not bad news.
After a mid-April “tariff tantrum,” bond markets appear to be moving past trade headlines and turning their attention to upcoming tax policy and budget negotiations.
George Bory, chief investment strategist for Allspring Fixed Income, explains how active investing in fixed income can offer key advantages over passive investing by prioritizing investor needs, accounting for opportunity costs, and exploiting structural inefficiencies within the bond market.
Nick Venditti, head of Municipal Fixed Income, delves into the recent volatility in the fixed income markets in this episode of Allspring Muni Moments. With elevated yields and favorable muni-to-Treasury ratios, Nick highlights why now might be the time to explore municipal fixed income investments.
The market volatility following “Liberation Day” drove municipal yields to levels not seen since the Global Financial Crisis, presenting real opportunities for investors.
Bond markets are adjusting to tariff impacts amid economic uncertainty. Fixed income investments can help protect against downturns. Expect further yield curve steepening and sector rotation. Use “Riding the Curve” solutions to help maximize income and diversify duration.
Nick Venditti, head of Municipal Fixed Income at Allspring Global Investments, talks about how, for the first time in a while, the higher education sector is starting to show signs of distress.
Allspring fixed income experts George Bory and Nick Venditti recap an eventful start to the year. Trump took office again, wildfires raged in California, and the backdrop was set for a potentially volatile rest of the year. In this episode, find out what all that means for munis in 2025.