Jason Mertz of AllianceBernstein - Municipal Bonds: The Fastest Growing Segment in the Muni Market and the Outlook for 2024

Episode • Apr 9, 2024 • 38m

Today Rusty & Robyn are joined by Jason Mertz, Director and Fixed Income Investment Strategist at AllianceBernstein. Jason works extensively with the firm’s portfolio management, credit research and trading team to monitor and communicate portfolio positioning and analysis to clients around the US. Prior to joining AB in 2016, Mertz worked at BlackRock as a separately managed account analyst. He holds a BA in finance and international business from Muhlenberg College.

Key Takeaways

[03:15] - Jason’s professional background, what initially drew him to this industry and his current role at AllianceBernstein.
[04:30] - What really sets AllianceBernstein apart from other firms?
[07:26] - What is the current, overall state of the Municipal Market?
[08:20] - What are some of the high level investment benefits that investors are able to capture in the Muni Market?
[10:09] - What are the fastest growing segments of the Muni Market currently?
[11:30] - Jason’s outlook for the Muni Market in 2024.
[14:07] - How is AB positioning portfolios to take advantage of volatility and potential dislocations and opportunities?
[17:46] - Why would a client want a customized, separate account over a fund or collection of funds?
[19:48] - What is AllianceBernstein’s “Abbie Optimizer” and how does it generate alpha?
[21:34] - How does Jason define trading alpha and speed alpha?
[24:31] - What other ways does AllianceBernstein manage for taxes?
[28:25] - What is currently Jason’s favorite investment idea?

Quotes

[12:03] - “[In] 2023 [there was] a lot of volatility, [but] it actually ended up being a really great year for [Municipal Bond]performance; it was just backloaded to November and December.” ~ Jason Mertz

[13:37] - “Not only do we think The Fed is going to cut, [which is] traditionally a great thing for Fixed Income, but more Muni specific - that supply demand dynamic and having a lot more demand be allocated back into the market should be a [stabilizing] and driving force of returns for Muni clients going forward.” ~ Jason Mertz

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Disclosure(s) - Orion Portfolio Solutions, LLC, an Orion Company, is a registered investment advisor.

Compliance Code: 0796-OPS-4/2/2024

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