The municipal market has changed dramatically in the past few years. Beginning with the demise of the monoline bond insurance industry in 2007-2008, significant market dislocations changed the composition of the municipal marketplace and ended the period of inexpensive leverage and municipal derivatives. In the months that followed, widening credit spreads and shaken confidence in the aftermath of the general market malaise hurt municipal bond funds, causing leveraged investors to liquidate. We are now facing a new era where continued negative municipal credit news, persistent volatility in relative value trading and the limitations of traditional bond buyers to manage their toughest credit exposures have generated tremendous opportunities for savvy investors with the relationships and restructuring skills needed to unlock value from distressed bonds. Saybrook is proud of its track record of providing fund strategies to capitalize on municipal bond opportunities since 2000.
Enhancing its stable of credit-oriented municipal investment funds, Saybrook’s response to the current environment is the Municipal Spectrum Fund. Building on the expertise of over 20 years in defaulted & distressed municipal bonds, Saybrook and Concordia Advisors have created the Fund to deliver a scope of opportunities ranging from oversold high quality credits to defaulted & distressed workout situations. Allowing investors to express their return expectations while also managing their preference for liquidity, the Municipal Spectrum Fund may present an attractive alternative for opportunistically minded investors. For more information on the Municipal Spectrum Fund, please contact us.