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CIM Market Commentary: Cue the Great Moderation
by Andrew Clinton of Clinton Investment Management, 6/25/24

Financial markets have posed a number of vexing questions to investors over the past two years, not the least of which included the height to which interest rates could rise without negatively impacting US economic activity.

The American Rescue Plan and Its Impact On Municipal Credit Quality
by Andrew Clinton of Clinton Investment Management, 3/17/21

We expect the recent passage of the $1.9 trillion American Rescue Plan to be an extremely positive impulse for municipal credit stabilization and underlying fundamental improvement more broadly.

Best Performing Asset Class Over the Past 10 Years?
by Andrew Clinton of Clinton Investment Management, 8/18/17

The dramatic recovery in fixed income markets, which began in Q1, persisted throughout the second quarter. Investors increasingly sought safe haven investments in light of geo-political uncertainty and perceived overvaluation in equity markets more broadly.

April 2017 Market Commentary
by Andrew Clinton of Clinton Investment Management, 5/25/17

“It was the best of times, it was the worst of times…” to borrow a phrase from Dickens’, Tale of Two Cities. As 2016 came to a close it seemed truly the best of times for many. Following the US election, there was renewed hope and optimism for growth initiatives, as well as public policies, which generated a sense of certainty and euphoria about the future.

Municipal HY Attractive Relative to Corporate HY
by Andrew Clinton of Clinton Investment Management, 9/19/14
Given the steady and significant compression of corporate high yield (HY) spreads/yields, I am forwarding the attached illustration depicting the ratio, or yield, of the Barclays Municipal HY Index relative to the Barclays Corporate HY Index.

October 2013 Market Commentary
by Andrew Clinton of Clinton Investment Management, 11/19/13
The Feds decision in September to maintain its policy of asset purchases, better known as Quantitative Easing (QE), caught the broader market by surprise. Fed tapering of QE was broadly expected to begin in September. The Feds decision to delay the reduction of QE pushed back the date upon which anticipated tapering would begin. This resulted in a meaningful rally in Treasury bond prices in September. To the surprise of many media pundits calling for ever higher interest rates, US Treasury yields ended October at 2.55%, virtually unc

Muni Market Resurgent
by Andrew Clinton of Clinton Investment Management, 9/25/13
In light of the recent recovery in fixed income markets and the outperformance of the municipal bond market in particular, I thought I would send a note to provide a brief update since we last sent our market observations in July and August. As you may recall, we stated in the clearest terms that we felt the recent rise in interest rates provided an attractive entry point for municipal bond investors.

July 2013 Market Commentary
by Andrew Clinton of Clinton Investment Management, 8/1/13
Fixed income investors have enjoyed a steady move higher in bond prices over the past five years. Given the consistency with which bond values have increased, it is understandable if bond investors were surprised by the just over 0.60%, or 60 basis point rise in ten year Treasury yields and corresponding movement down in bond prices during the second quarter.

April 2013 Market Commentary
by Andrew Clinton of Clinton Investment Management, 5/29/13
Interest rates rose modestly during the first quarter as ten year Treasury yields increased by approximately 0.10% or 10 basis points. Seasonal tax-time municipal bond liquidations, together with a heavier primary calendar, weighed heavily on the market causing municipal bond yields to underperform on a relative basis. In our recent market opinion we thoroughly discussed our view that the relative cheapening of municipal bonds presented investors with and attractive entry point as we expect technical conditions to improve as we move into the summer months.

Municipal Market Presents Attractive Entry Point
by Andrew Clinton of Clinton Investment Management, 3/20/13
Ten year Treasury yields, as recently as last week, were as high as 2.06% which compares to ten year Treasuries yields of 1.75% as of 12/31/12. As Treasury yields have drifted higher, due in part to heavier Treasury issuance and a perceived decline in market risk/volatility, municipal bond yields have risen in sympathy with Treasury yields. Having said that, at the time of the writing of this note, Treasury yields are once again lower and are now below 1.90%.

January 2013 Market Commentary
by Andrew Clinton of Clinton Investment Management, 2/22/13
The municipal bond market continues to perform well in the face of significant political, financial and economic uncertainty, once again, demonstrating the importance of consistent, competitive tax-free cash flow. Municipal bonds proved to be one of the best performing asset classes during 2012.

November 2012 Market Commentary
by Andrew Clinton of Clinton Investment Management, 11/15/12
In light of the approaching fiscal cliff and likely changes to the US tax code, we continue to believe that municipal bonds offer some of the most attractive risk- adjusted return potential available in the market today.

August 2012 Market Commentary
by Andrew Clinton of Clinton Investment Management, 9/6/12
On a year-to-date basis the municipal bond market has, once again, delivered meaningful returns both on an absolute and risk adjusted basis. While the market yield and or cash flow of a bond is typically very important to investors, it is equally important to remember that the income a bond produces is only one component of a bonds return. Investors must consider several other essential elements of a security to properly quantify a bonds relative value.

4Q2011 Market Commentary
by Andrew Clinton of Clinton Investment Management, 2/15/12
Tepid, albeit positive, economic growth, together with the Feds most recent statements that short-term interest rates will be kept low for at least the next two years, provides greater investor confidence in the recent stabilization of the municipal bond market as underlying credit conditions continue to improve. Current economic recovery remains weak, however. Material cuts in government spending over the next three to five years will likely further constrain growth. We, therefore, do not see a catalyst for significant domestic growth in the near-term.

Clinton Investment Management 3Q2011 Market Commentary
by Andrew Clinton of Clinton Investment Management, 12/14/11
As we look toward year-end, we endeavor to seek out the best means for adding meaningful value to our client portfolios. We expect municipal bond new issue supply to dissipate as we approach the New Year. As it does, we expect technical conditions to improve materially. We also believe that the roughly $20 billion in anticipated January reinvestment will pull demand for municipal bonds forward into December. We have extended our client durations modestly in an effort to capitalize on what we believe could be a period of solid outperformance for the municipal bond market.

2011 First Half Review
by Andrew Clinton of Clinton Investment Management, 9/27/11
While yields on tax-exempt municipal bonds are lower than they have been in some time, there remains a strong argument for investing in tax-free investments that deliver actual cash flow. In addition, given the municipal bond markets historically stable credit history, illustrated most recently by states and local governments demonstrated willingness and ability to make difficult choices in order to protect debt holders, we would argue that investing in municipal bonds today is particularly compelling given the opportunity to achieve attractive relative return.

Yelling Fire in a Crowded ?Muni? Theatre
by Andrew Clinton of Clinton Investment Management, 2/11/11
Municipalities have the unique power to raise taxes and service fees, while cutting non-essential services, in order to create revenues sufficient to pay debt holders. There are over 50,000 individual municipalities across the country. Over the course of decades, there have been very few instances of default. The economy's improvement should bolster state and local finances now and in the future. I firmly believe investors seeking safety of principle and attractive tax-free cash flow should look to capitalize on the current market uncertainty as they are being well compensated to do so.

Municipal Bond Market August 2010 Q&A
by Andrew Clinton of Clinton Investment Management, 9/10/10
In their quarterly commentary, Clinton Investment Management answers questions regarding municipal bond market conditions. As the U.S. economy stabilizes, they argue, higher interest rates will likely follow. That is not to say, however, that investors should avoid fixed income, let alone municipal bonds. As an asset class, fixed income, and tax-exempt bonds in particular, have proven to be a stabilizing force in asset allocations during what has arguably been one of the most challenging three-year periods in financial market history.

Municipal Bonds - CIM 1Q 09 Quarterly Review and Outlook
by Andrew Clinton of Clinton Investment Management, 5/7/09
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