Muni Market Operating Efficiently: BofA's McQueen

Matthew McQueen, head of global FICC micro at Bank of America, discusses the municipal bond market's resilience to rate volatility, attractive valuations inside the 10-year part of the curve, robust infrastructure-related demand driving long-end issuance, the negligible impact of state wealth-tax discussions, and the structural shift toward muni ETFs and separately managed accounts. - Muni market has shown minimal impact from recent rate volatility, staying efficient and robust. - Valuations inside the 10-year point of the curve are described as very investor-friendly. - Infrastructure spending needs will boost issuance in the 10-30 year segment, where municipal ratios are particularly attractive. - Wealth tax debates in some states have not widened muni spreads, and state credit quality remains solid. - Muni ETF inflows have overtaken mutual fund inflows this year, and separately managed accounts are expanding. - Market structure has adapted to rising small-lot trading volumes through algorithmic trading and portfolio trading.