4Q26 Capital Markets Outlook: Shaken, Not Stirred: Munis

AllianceBernstein's municipal team, represented by Daryl Clements, walks through a sharp repricing in muni bonds driven by heavy issuance, tax-season pressures and investor outflows. The video covers how tax-exempt yields moved higher and valuations shifted from fair to broadly cheap, and it argues that stressed technicals may be creating an entry point. It also touches on potential crossover demand, the historical pattern of muni snapbacks, and active curve and credit positioning.

1. Tax-exempt yields moved sharply higher as heavy issuance, tax-season pressures and investor outflows collided.
2. Valuations shifted from fair to broadly cheap, and stressed technicals may be creating an attractive entry point.
3. Clements discusses the potential for crossover demand and the history of muni snapbacks.
4. The video emphasizes active curve and credit positioning, framed as turning near-term volatility into long-term tax-aware income.