Municipal Fixed Income Perspectives — April 2025

April 15, 2025 — This presentation provides an overview of our municipal market outlook and key themes, and it illustrates how Sage is positioned in the current environment.

Key Themes

• Municipal credit quality remains solid and continues to improve. For investors whose effective federal tax rate is 30% or higher, municipal bonds should be part of their fixed income allocation.
• Lock in higher yields now before market conditions change. Longer dated maturities offer the best value due to a steep yield curve — the 10s30s curve offers a generous 100 bps to extend duration.
• Sector and credit spreads are fully valued, except for pre-paid gas bonds, but security selection can still provide selective opportunities to add income.