1Q 2016 wrap-up: Municipal bonds

Greg Gizzi of the Delaware Investments fixed income team discusses how drivers within the municipal asset class affected the marketplace during 1Q 2016.

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we've existed in an atypical marketplace now for the last several years one and which rates have been kept artificially low for an abnormal period of time so really it's been a story about getting exposure to the right segments in the market we've been doing pretty well our strategy plays nicely into the the strength of the marketplace so we tend to be overweight both credit and curve and those are the two segments in the marketplace that are really working we heading to 2016 with really a challenging environment that they did just raise rates in December and I think the expectations were for additional at rate hikes and what we've seen is doing a combination of macro economic and geopolitical events we could be in for another year of lower for longer I'm so despite those that challenging beginning we seen a solid performance here for the meanest plastic class in the first quarter what's driving the market for the back half of 15 and into the first quarter of 16 is a very strong positive technical that exist in the marketplace today we are seeing a very good flow into the marketplace and we're seeing our supply picture down slightly from last year so there is a good positive supply-demand technical in the marketplace against the backdrop of lower rates

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