Our services in the selected location:
  • No services available for your region.
Select Location:
Select Location
    Remember my selection
    Your browser is out of date. It has known security flaws and may not display all features of this and other websites

    2021 Muni Outlook

    2021 Muni Outlook

    The Sun Also Rises

    The Covid-19 pandemic made 2020 a year like no other. But the municipal bond market largely weathered the storm. In 2021, we think another supply surge and the potential for policy changes may create volatility —and opportunity—for selective investors, including in municipal credit.

    We see three themes with the potential to drive performance

    Supply Surge: Use It to Your Advantage

    Investors may get the chance to maximize after-tax yields

    Status Quo or No?
    Eye on Fiscal Policy

    New administration. New priorities.
    New policies?

    Taking Credit in 2021

    Selective exposure to credit may yield opportunities

       

    Key Considerations

    "If Treasury yields remain at low levels, we will likely see taxable munis comprise a large portion of total municipal supply again in 2021. We believe this allows for compelling relative value opportunities for disciplined and active investors."

    Scott Diamond | Co-Head GSAM Municipal Fixed Income

    "Policy changes could lead to increased interest rate volatility in 2021. Investors are encouraged to evaluate duration risk within portfolios. This may mean considering a flexible, actively managed approach that is ready to take advantage of opportunities across the yield curve."

    Sylvia Yeh | Co-Head GSAM Municipal Fixed Income

    "Strong revenue growth prior to the pandemic helped municipalities persevere through the difficult April-June period. If the US economy continues to return to normal trends, municipal credit should broadly benefit."

    David Alter | Head of GSAM Municipal Research

    Download Full Publication

    2021 Muni Outlook

    Access the full PDF to use with your clients

    Related Insights

    Goldman Sachs Municipal Bonds – Stay Ahead of the Curve

    January 04, 2021

    How Municipalities Can Manage Economic Stress

    November 16, 2020

    It’s What You Keep That Counts: Understanding Taxable Munis

    November 10, 2020

    A Closer Look at Municipal Credit

    Contact Us

    Media Contact
    +1 212-902-5400
    By Mail
    200 West Street New York, NY 10282 United States