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We believe the municipal bond market offers relatively attractive prices and yields, and credit health remains solid.
We believe fixed income valuations are meaningfully more attractive and current yields have greatly improved the income profiles for investors.
With the rise in rates, we expect more companies will be coming to market and issuing converts. As the rate differential rises between convertibles and straight bonds the quality of companies issuing converts will likely improve.
We believe that amid the very negative overall market reaction in the first half of 2022, underlying improvements in sovereign and corporate balance sheets have not been fully reflected in valuations.