From Lake Tahoe, Zephyr’s Adjusted Risk Podcast welcomes Eric Kazatsky, Client Portfolio Manager at MacKay Municipal Managers, an $85–$86B specialist in tax-exempt and taxable municipal strategies across ETFs, mutual funds, interval funds, and limited partnerships. The conversation covers today’s macro uncertainty—sticky inflation, rate direction, yield-curve shape, geopolitics—and why munis can help portfolios through low correlation, diversification, and tax-equivalent income potential. Kazatsky discusses a defensive posture using higher coupons, where MacKay sees relative value on the muni curve (about 17–22 years), how munis follow Treasuries directionally while facing distinct domestic fundamentals, and why taxable munis exist and can offer attractive spread and institutional-grade issuers. He also explains active vs. passive considerations in a market with many issuers and index gaps, and shares where to find MacKay’s research and updates online.
Learn how Zephyr can help you show the impact Municipal Bonds have on investment portfolios. Learn more about Zephyr here.
Learn more about MacKay Municipal Managers here.
00:00 Welcome to the Podcast
01:19 Meet Eric and MacKay
02:48 Munis in Real Life
03:30 Interval Funds Explained
04:32 Macro Backdrop and Rates
07:05 Best Spots on the Yield Curve
08:15 Geopolitics and Muni Resilience
11:40 Taxable vs Tax Free Munis
13:45 Why Munis Get Overlooked
16:40 Interest Rate Volatility and Liquidity
18:25 Active vs Passive in Munis
21:36 How Advisors Should Use Munis
22:57 Where to Learn More
23:49 Final Thanks and Sign Off