Broker Check

Market News & Commentary - From The Desk Of David Loesch 06.02.2022

June 01, 2022
  • Last week, the MUNI market turned on a dime; outflows slowed to $1B in the week ended 5/25, the smallest withdrawal since March. The MUNI market staged the biggest rally in two years fueling optimism that pricing may be close to a bottom. The selling pressures of the last five months have disappeared. Buyers have also been drawn to Muni's by cheaper evaluations ahead of a calendar period when the asset class tends to benefit from investors looking to reinvest principal and interest payments.
  • As mentioned last week, visible supply going into the summer will remain light, as it began the week at $8.8B, well below the average of $11.6B. This point should help our markets as we move through the week and month.
  • According to the prior report, the Fed beige book will likely conclude that economic activity is expanding moderately. The last Beige Book figures pointed to accelerating consumer demand, solid manufacturing activity, and strong demand for housing. This fact suggests that Fed Funds Rates will be moving up over the near term. Inflationary pressures have shown tentative signs of abating; however, this should not change the course of the 50bps move this month. With our markets seeming like they are on the rebound, it will be interesting to see how the month of June finishes.
  • Chatter on a US recession increased volume last week as new home sales plunged. The FED indicated that it needed "clear and convincing" evidence of a decline in inflation before considering any policy changes. I do not think we will see any changes until this year's winter.
  • Municipalities plan to sell $9.36b of bonds and notes this month. In the next 30 days, redemptions and maturities will total $27.8b, compared with $22.8b a week ago. According to Bloomberg News, institutional investors offered $1.47b for sale through bid-wanted lists in the last session, up 25% from $1.17b the previous day.
  • According to Invesco, municipal bond prices have sunken so low that they are starting to lure crossover buyers who don’t typically purchase this debt. Firms like banks or insurers are looking to take advantage of the market's low default rates and strong fundamentals, says Stephanie Larosiliere, Senior Muni Strategist at Invesco. "Since this started, it has all felt very mind-boggling because Muni fundamentals have never been better,” she said on Bloomberg Television. “From a historical perspective, Muni's have just gotten extremely cheap.”


David Loesch

605-B Park Grove

Katy, TX 77450

866.664.4040 (toll-free)

281.398.8600 (direct)

281.398.8607 fax


This report has no regard to the specific investment objectives, financial situation, or particular needs of any specific recipient. This report is based on information obtained from sources believed to be reliable, but no independent verification has been made, nor is its accuracy or completeness guaranteed. This report is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Opinions expressed herein are subject to change without notice. The division, group, subsidiary, or affiliate of NewEdge Securities, Inc., is under no obligation to update or keep the information current. The securities described herein may not be eligible for sale in all jurisdictions or to certain categories of investors. NewEdge Securities, Inc. accepts no liability for any loss or damage of any kind arising out of the use of this report. Please contact your tax advisor regarding the suitability of tax-exempt investments in your portfolio. Income from municipals may be subject to state and local taxes and the Alternative Minimum Tax. Corporate and Municipal securities are subject to gains/losses based on the level of interest rates, market conditions, and credit quality of the issuer. As with any security, there is an inherent market risk possibility as to principal if the security is not held to maturity. The non-rated bonds (NR) should be considered for investment by knowledgeable and sophisticated investors. Additional information will be made available upon request.



Securities are offered through NewEdge Securities, Inc., a registered Broker-Dealer, Member FINRA/SIPC.


The DRL Group is not a registered entity or a subsidiary or control affiliate of NewEdge Securities, Inc.


 Bonds are subject to market and interest rate risk if sold prior to maturity. Prices and availability may change at any time without notice. Insured bonds are subject to the claims-paying ability of the insurance company.

Reminder: E-mail sent through the Internet is not secure. Do not use e-mail to send us confidential information such as credit card numbers, change of address, PIN numbers, passwords, or other important information. Do not e-mail orders to buy or sell securities, transfer funds, or send time-sensitive instructions. We will not accept such orders or instructions. This e-mail is not an official trade confirmation for transactions executed for your account. Your e-mail message is not private in that it is subject to review by the firm, its officers, agents, and employees. Unless expressly stated in this e-mail, nothing in this message should be construed as a digital or electronic signature.