Hawkish Fed Is Top Muni Concern in 2022, Hilltop Survey Shows

  • 42% of analysts focus on impact of central bank’s strategy
  • Public finance rating upgrades likely to outpace downgrades
Muni Investors Waiting on Fed Clarity: Hilltop's Kozlik
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The Federal Reserve’s pace of action is the top issue concerning municipal bond analysts for 2022, according to a survey published Monday by Hilltop Securities.

Among the 130 analysts surveyed, 42% say the Fed is the most important issue or trend influencing the market. Munis have been hit hard by a broader selloff, spurred in part by the Fed’s tightening monetary policy to combat inflation.