The last few years have seen the world of municipal bonds splinter into many different levels of risk with divergent underlying financial trends and political developments.
The rise in developing China has been a major theme for the past decade and their insatiable appetite for resources and expansive government funded stimulus was the source of their biggest world export: global inflation.
While pundits debate the timing of the US Federal Reserve’s first interest rate increase of the decade, what’s certain is the Fed Funds rate path higher will prove a slow climb. Why? In large part, owing to US Dollar strength in the last twelve months.