Greg Davis: Paul, it is fantastic to have you listed here today to discuss to our customers about what is been occurring in the municipal bond market place. You know, we have witnessed a really major amount of money of concern all over liquidity disorders in the marketplace. Like to get your perspective on what you fellas are viewing as the head of the municipal bond team.

Paul Malloy: Positive. So what we’re viewing is a really rapid selling price adjustment just as we have witnessed in numerous other marketplaces. And component of that in the municipal market place is due to the really loaded concentrations we went into this at. And on the other side is buyers needing income for different reasons this kind of as rebalancing into fairness portfolios. And you have bought some other shorter-term gamers in the municipal marketplaces that are demanding liquidity. So what that has finished is place some stress on yields to shift upward as buyers are demanding liquidity into the products, but in the end this rapid selling price adjustment is a very good point.

Greg: And when you consider about for prolonged-term buyers, bigger yields should really be a very good point for all those buyers, proper Paul?

Paul: Certainly. So, to get the true benefit of the municipal asset course, you will need to be a prolonged-term owner. It is all about building tax-free of charge money, and the only way you get to deliver that tax-free of charge money in excess of time is by keeping it in excess of time and looking by means of any bits of selling price volatility. So you have bought a really unique prospect now to lock in some really higher yields tax-free of charge money for the prolonged operate.

Greg: What’s your get on the Fed’s new credit score and liquidity facilities, what effects are you fellas viewing in conditions of the market…how are the marketplaces responding to that?

Paul: Very well, we applaud the Fed’s steps to keep money flowing by means of the system. You know the money market place liquidity facility, it was fantastic to have it expanded to deal with municipals so that it was addressed just like each other money market place fund. It was fully inclusive. The other credit score facilities that were announced are supplying ancillary added benefits that as all those marketplaces have firmed up, municipal marketplaces are looking really appealing compared to a good deal of other fastened money asset classes. So, you are acquiring a good deal of cross-in excess of buyers interested in the municipal area.

Greg: So, Paul, provided the existing market place surroundings, what advice would you give to customers thinking about or investing in munis at this point in time?

Paul: Yeah, I would say, consider about why you get into munis to get started with. It is bought really minimal historical default prices and you get tax-free of charge money. So, proper now, with yields exactly where they are, you have the capacity to lock in some really good yields to get that tax-free of charge money. You can commit on a diversified foundation to take away even the smallest little bit of default hazard and maintain it for the prolonged term.