Opportunities & Risks in Muni Bonds

Published on
April 18th, 2018
25 minutes

Opportunities & Risks in Muni Bonds

The Expert View ·
Featuring Dean Myerow

Published on: April 18th, 2018 • Duration: 25 minutes

Bond portfolio manager Dean Myerow has spent his 25-year finance career in "muniland"— trading and investing in municipal securities. In this in-depth interview, Dean explores the advantages of investing in the muni bond space, such as principal protection and a regular income stream, and maps out potential risks to avoid, such as states with large structural deficits and bond issuances fueled by ill-conceived political boondoggles. Filmed on April 6, 2018 in New York.


  • CC
    Chris C.
    29 April 2018 @ 21:11
    Dean I did enjoy watching this. Actually a quick, easy to understand background on Muni-Bonds. What would REALLY be helpful however are links and websites to companies doing business in the Muni-Bond world (that you would recommend of course) that work with retail investors? Are there any in fact? Are Muni-Bonds worth investing for smaller retail investors $20K-$50? Or is this market more for wealthy individuals and institutional investors? How can a retail investor take advantage of the Muni-Bond market?
  • JH
    Joseph H.
    22 April 2018 @ 17:48
    I ponder Howard Mark's recent comments that he hasn't owned a muni in 40 years and an observation from that other great credit analyst, Cormac McCarthy. "People don't pay attention. And then one day there's an accounting. And after that, nothing is the same" Still, too many high net worth political donors loaded down with muni's to think the end is nigh. Not that I'm buying California high speed rail revenue bonds.
  • SJ
    Sy J.
    22 April 2018 @ 09:26
    How is illinois going to turn the ship around? I don’t see it. Their are only less bad outcomes.
  • KZ
    Kurt Z.
    22 April 2018 @ 04:52
    Still schoolin' me.
  • EH
    Edwin H.
    20 April 2018 @ 16:45
    Over all this was a great intro to the muni bond market. I believe Real Vision should bring Dean back to go more in-depth, there is a lot to learn. It is easy to see Dean has a passion, and that is key when it comes to investing. The most important token from this presentation is it is time for risk management. Muni bonds are a great vehicle for this.
    • DM
      Dean M.
      20 April 2018 @ 17:01
      Thanks Ed. Next time I hope to cover yield curve, credit spreads, and more on Puerto Rico. As you can imagine its hard to cover the municipal bond market in-depth in 20 minutes. I agree with you wholeheartedly that high quality munis are a great vehicle for income and risk management. Dean
  • NZ
    Nicolas Z.
    20 April 2018 @ 02:00
    Where is the depth on Chicago or Puerto Rico? I could have learned more from WSJ, I would have liked much more depth. Daniel Ruiz was a great example of someone who had depth and breadth.
  • WG
    Wade G.
    19 April 2018 @ 22:00
    This sure struck me as mostly trite and uninteresting. To be fair, I'm not interested in the asset class (for all the reasons he did not discuss and for those of which he gave short shrift), but I thought I might learn why I'm wrong, or perhaps be reinforced that I'm right. I think he spent more time talking about Liar's Poker than under-funded pensions. Meh.
  • AL
    Andrew L.
    19 April 2018 @ 19:38
    US Munis have dodged many bullets and have kicked the can down the road since US consumers continue to get bailed out or have the ability to juggle debt. There is no question that there will be an event - The big question is what happens after - more can kicking or those affected finally have to learn to tighten belts
  • NH
    Neil H.
    19 April 2018 @ 14:43
    a lot was not covered in this video 1. demographics- people moving out of high tax states 2. 10 year has gone from 1.37 to 2.90 and he said folks are waiting for rates to rise 3.what happens when we move from deflation to inflation 4.yields after mangement fees and taxes are negligible
  • KS
    Kathleen S.
    19 April 2018 @ 13:11
    Sounds like many of these muni's are basically insolvent and without the ability to continue to borrow they would be broke tomorrow, so what we have here is a ponzi scheme in muni land. Pretend and extend and then when the collapse comes we will cut social programs and privitize state infrastructure (this is a neo-liberal agenda, NYC was the first to experience this in the 70's when one day nobody showed up to buy their bonds) --- My question is if all bonds must be paid, then they are basically a guaranteed loan; so where is the risk the bond holder is taking in lending his money? And if there is no risk then why are muni's paying high interest rates? This will all end badly.
  • RI
    R I.
    19 April 2018 @ 03:20
    Not bad, though barely scratches the surface of fundamental and relative value credit analysis. But it’s a start for RV; besides the occasional David Meneret interview, RV barely covers bond investing, which happens to be the largest asset class on earth.
  • FB
    Floyd B.
    18 April 2018 @ 22:01
    while i think the video deserves a view,the presenter repeated himself and could have instead discussed things like credit spreads,taxable equivalent yields given different investor tax rates and taxation, diversification within a portfolio, attractive positioning on the yield curve presently..etc,etc..
  • HJ
    Harry J.
    18 April 2018 @ 17:01
    Debt service ratios are a serious concern. IDR bonds often are grossly over priced in the secondary market. It then comes down to the debt service ratio of the endeavor backing the bonds. When finances go south for the backer of the bonds the investor will take the hit. Muni bonds are issued at auction so the new issue price usually represents the risk involved. But the secondary market will tell you of the ongoing risks. If the bonds are cheap relative to the general market pay attention there’s a reason for that as risk has gone up! Careful!!
  • TH
    Thomas H.
    18 April 2018 @ 10:58
    My biggest concern is what will happen to municipal financing with the next recession.