Leaning into Muni Credit Amid a Pending Recession – AllianceBernstein 3.7.23

Summary:

Now On Demand

As inflation moderates and the economy slows, questions abound regarding the ability of states and municipalities to withstand a likely economic recession. What resources do municipalities have and how can investors protect their portfolios in an economic recession?

Don’t miss an in-depth conversation with AB’s Director of Municipal Credit Research, Larry Bellinger, CFA, Municipal Portfolio Manager, Daryl Clements and Investment Strategist, Jason Mertz. Our muni experts will share their insights on how to position portfolios opportunistically in a rapidly changing market:

• What is the current state of municipal credit?
• How AB’s active approach is sizing up wider credit spreads and strong fundamentals as we seek to deliver alpha in portfolios
• What AB’s muni portfolio managers are adding and what they’re avoiding in a likely recessionary environment

Speakers:

Larry Bellinger is a Senior Vice President and Director for the Municipal Credit Research Group, providing high-yield research on municipal credits, with a focus on senior living and hospitals. He initially joined AB in 2012 as a municipal credit research analyst, focusing on municipal credits in Northeastern states, as well as Florida, Ohio and Wisconsin. Bellinger returned to the firm in 2019. In between, he spent three years as a research analyst with Schroders, covering all regions and all municipal sectors for investment-grade and high-yield credits. Earlier in his career, Bellinger worked at Moody’s Investors Service, where he primarily analyzed municipal credits in the Northeast. Prior to that, he was an analyst at insurance-rating agency AM Best Company and a D&O underwriter for financial institutions at insurance company Chubb. Bellinger holds a BS in business administration (international business) from Central Washington University, an MBA from Michigan State University and a JD from Rutgers Law School. He is a CFA charterholder. Location: New York

Daryl Clements is one of the portfolio managers responsible for overseeing the firm’s various municipal bond accounts. He joined AB in 2002 as a municipal credit research analyst, responsible for evaluating municipal issuers nationwide, with a particular focus on the transportation, public power and tobacco-backed bonds sectors. In 2006, Clements joined the portfolio-management team and became a member of the Tax-Exempt Fixed Income Investment Policy Group. Prior to joining the firm, he was an associate director for Financial Guaranty Insurance Company (FGIC) for six years, covering various issuers and sectors nationwide. For the five years prior to that, Clements was a research associate for Moody’s Investors Service, assigning ratings for the southwest region of the country and New York. He holds a BS in business, management and finance from Brooklyn College and an MBA in finance from Pace University. In 2008, he co-authored the “How to Analyze Airport Revenue Bonds” chapter in The Handbook of Municipal Bonds. Location: New York

Jason Mertz is the Product Manager for AB’s Municipal Bond Platform, covering all 40 Act mutual funds and separately managed account solutions. He 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. Location: New York