00:03all right good afternoon everyone this is uh this is very exciting i'm sure you're very excited
00:09about the muni segment of this presentation i uh i did not name the presentation the magic of muni
00:17someone in our marketing department did they came up to me just now and said you got to make munis
00:21magical and i panicked so i ran straight to the makeup artist backstage and i said make make me
00:28look magical and this like abject terror spread over her face and she said i don't know if i have
00:35enough time and i certainly don't have enough makeup so thanks stacy for what you have this is
00:42the best you can do but i am i'm gonna try and convince you that munis are more magical than
00:50the private credit you just heard about i know tall order right i'm gonna try and convince you that
00:56munis are more attractive than alex rodriguez i texted my wife and i said oh my god i'm standing
01:04next to alex rodriguez and she sent me like a thumping heart emoji back so my self-esteem has
01:10been damaged twice both by stacy the makeup artist and my wife in a very short period of time so
01:18we're
01:18gonna have to really really recover from that why are munis magical munis are maybe the best investment
01:27option available to you all right now especially if you are in the upper echelons of the tax bracket
01:35and given the fancy suits you are all wearing i am assuming you are all high taxpayers munis are awesome
01:44for a couple of reasons one they're awesome on the short end they're awesome on the short end because
01:48ultra short munis are out yielding your money market by 75 basis points right now if if you own
01:58a money market if you have extra cash sitting in your money market you should leave my presentation
02:03right now and go make a trade it is the easiest no-brainer trade to make in all of the
02:09financial
02:10markets go buy ultra short muni i work at all spring we have one throwing that out there that's
02:19easy right that's not that sexy what is sexy we talked about private credit private credit is certainly
02:26interesting and just the name itself gets people excited why does private credit not hold a candle to
02:33munis i'll tell you why munis are better credits much much better credits
02:40in fact a very very common statistic that we like to throw out is that triple b rated munis
02:46default less frequently than triple a rated corporates that's boring all right what does that mean
02:52practically well that means that it is less likely that the city of chicago will default on its debt
03:00than apple computer than apple apple is more likely to default on its debt than the city of chicago that
03:07seems crazy people say unfriendly things about chicago all the time chicago is awesome
03:14there's about a hundred years of data to support that assertion munis are better credits there are
03:20lots of better credits than the things that sit in private credit more importantly than that right now
03:24right now today high yield munis out yield almost every private credit fund out there on an after-tax
03:32basis they're generating more yield with less risk and and if you want your money back
03:41we can give it to you
03:45i told you they are magical right the magic is here more importantly than that i heard the two
03:52gentlemen before me talk about diversification munis provide better diversification than almost
03:57anything right when you guys think about diversification you think ah well stocks and bonds
04:02they they move in different ways but they provide better diversification than that how how you ask
04:09i live in milwaukee wisconsin it turns out that the water and sewer system in milwaukee wisconsin has
04:17nothing at all nothing at all to do with iran
04:23a school district in southern california is not impacted by israel in the middle east
04:29but most corporate credits are either directly or indirectly munis are better they are safer they
04:38yield more and they are less volatile in an incredibly volatile world and that that is magical
04:46i am going to tell you just in the interest of intellectual honesty that there are a couple of
04:52things you need to be aware of in the muni market right you need professional management because occasionally
05:00bad things happen again i have 12 seconds left if you think munis are as magical as i do and
05:08you want
05:08professional management all spring i appreciate you guys giving me the time have a great rest of your day
05:15thank you
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